For individuals wishing to bestow large gifts to VON Niagara, the establishment of a charitable remainder trust may be an attractive planned giving option, particularly if during their lifetime they would like to secure both income and significant tax relief.
Under the advice and guidance of trust and estates lawyers, a donor is able to establish a charitable remainder trust by transferring property to a trust. Upon this transfer, the donor is considered to have disposed of the property and he/she may realize a capital gain or loss. The trust documents instruct the trustee to pay all of the income earned within the trust to the individual, but requires the property to be transferred to the charity a some later date, which is usually upon the death of the donor. Once the charity is named as the beneficiary of the trust, it cannot be removed or revoked. After the donor's death, the assets are passed on to the designated charity. If the donor has a spouse, the charitable remaindr trust should be set up so that they property passes to the charity only after the death of that spouse.
Last Updated: Jul 08, 2010