Charitable
Remainder Trust
Tax exempt and irrevocable, charitable remainder trusts are designed to reduce the taxable income of individuals. They are set up with a donation by the trustor that provides a partial tax deduction. They then operate by dispensing income to either the trustor or one or more named noncharitable beneficiaries for a specified period of time, after which they donate the remainder of the trust to White Horse Media.
Stewardship is being a wise overseer of God’s treasure.
Benefits of a charitable remainder trust
- A tax-exempt irrevocable trust that is designed to reduce the taxable income of individuals.
- Dispenses income to one or more noncharitable beneficiaries for a specified period and then donates the remainder to White Horse Media.
- Setting up a charitable remainder trust makes the trustor eligible for a partial tax deduction.
How a charitable lead remainder works
- Setting up a charitable remainder trust makes the trustor eligible for a partial tax deduction.
- The payments can be made annually, semiannually, quarterly, or monthly.
- Once the time frame expires, the remainder of the estate is transferred to White Horse Media.
- Assets that can be donated to a charitable remainder trust include cash, stocks, real estate, private business interests, and private company stock.
- The partial tax deduction a trustor receives for their donation is based on the trust’s type and term.
- Charitable remainder trusts are irrevocable, which means that they cannot be modified or terminated without the charitable beneficiaries’ permission.
- By making a trust irrevocable, the trustor is removing it from inclusion in their estate, meaning that it will not be part of the probate process, is not subject to estate taxes, and can transfer to a beneficiary immediately.
