Charitable Remainder Trust
If you would like to receive a steady income while making a gift to Maranatha, you should consider a charitable remainder trust. This irrevocable arrangement allows you to establish a trust and still receive fixed income from the trust for life or a pre-determined amount of time. The income can go to you or a beneficiary. Once the time frame expires, the remainder of the assets is transferred to Maranatha.
The assets can include cash, securities, or real estate.
How It Works
Ted and Gina wanted to simplify their life by selling properties and liquidating their assets. First on their list was selling their rental property. But they did not want to pay capital gains tax. They decided to transfer the property to Maranatha in a charitable remainder trust with a 15-year payout of 5% of the asset’s current value. This is one of the many different options for payouts that can be fixed or variable, depending on the circumstances.
Benefits include:
- You may qualify for a current federal income tax deduction.
- You can receive steady income for a fixed period of time with opportunity for the income to increase if the value of the asset grows.
- You can receive benefits of selling your assets without incurring capital gains tax.