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Charitable Remainder Trusts

A charitable remainder trust a legal document in which you can place ownership of assets for specific purposes. The remainder, whatever assets remain after all other terms and conditions have been met—must finally be transmitted to a qualified nonprofit, charitable organization, such as the Claretians.

A charitable remainder trust can also enable you to diversify your assets, increasing your income without incurring capital gain cost.

A tax deduction is allowed at the time you create your trust. The amount of the deduction depends on your age, payment percentages, and other factors.

Charitable Remainder Unitrust (CRUT)
The Charitable Remainder Unitrust or CRUT is an individually managed trust, which pays you, your spouse, family members and/or other beneficiaries, including charitable organizations, income based on a percentage of the trust assets, which are valued annually for a period of time, not to exceed 20 years. In other words, the income is variable. When the value of the trust investments goes higher, more income is received. The income will be less if the value of the asset declines.

Charitable Remainder Annuity Trust (CRAT)
A charitable remainder annuity trust or CRAT is a trust that provides fixed payment income to you, your spouse, family members and/or other beneficiaries, including charitable organizations named by you. When the annuity trust term ends, the trust's principal passes to the Claretians, to be used as you designate.

A CRAT is best if you are looking for stable income.

Charitable Lead Trust
A donor transfers property to the lead trust, which pays a percentage of the value of the trust assets, usually for a term of years, to the Claretians. At the end of the trust term, the remaining assets in the trust and any growth it has realized are passed to your heirs. Although there is no income tax deduction when you create a charitable lead trust, your gift or estate tax is greatly discounted and any growth is passed to your heirs both gift and estate tax free. It is one of the only transfer devices currently used that can discount the value of the original assets and result in little or no taxes. At the same time, you fulfill your charitable desires.

The booklet "Planning Strategies, Which One is Best For You?" will answer these questions.