Charitable Remainder Trusts



Charitable remainder trusts are often used in estate planning to address a desire for increased income, provide for family members, benefit from tax savings, and support charitable organizations. You may find that such a trust offers a good solution for your specific situation. Most importantly, charitable remainder trusts are a proven, time-tested way to provide for Elderhostel’s future while you satisfy personal and family financial needs.

Because each charitable remainder trust is a separate legal entity that is managed individually, they are usually funded with gifts of $150,000 or more. In some circumstances charitable remainder trusts can be funded with gifts of $100,000 or more.

We invite you to explore the two types of remainder trusts: charitable remainder unitrusts and charitable remainder annuity trusts.
Consider Some of the Benefits

Versatility. Charitable remainder trusts are the most versatile life income gift and can help individuals and families meet estate planning and charitable goals.

Gifts of Real Estate. Donating real estate into a charitable remainder unitrust is a good way to make such a gift to Elderhostel when the donors also want to benefit from lifetime income.

Income Beneficiaries. A charitable remainder trust can benefit more than two income beneficiaires.
Charitable Remainder Unitrust

A charitable unitrust is an arrangement whereby you irrevocably place money or property into the trust, and the trustee pays income to one or more beneficiaries, usually for life. The income payout is a set percentage of the trust’s assets, which are revalued annually. When the income beneficiaries die, the property remaining (the “remainder”) passes to the charitable remainder beneficiaries.

Benefits of a charitable unitrust can include:
  • Income tax charitable contribution deduction
  • Increased income for you and your family
  • Favorable treatment of capital gains
  • Reduced estate tax
  • Flexibility to make additional contributions into the trust
  • Charitable Remainder Annuity Trust

    Persons seeking guaranteed income who are funding their trust with cash or appreciated securities may prefer a charitable reminder annuity trust instead of a charitable remainder unitrust. The two are similar; however, the annuity trust must be fully funded when the trust is established and the annual income is fixed at that time. For example, an annuity trust funded with $200,000, with a 5% payout rate, will pay a fixed income of $10,000 annually to the income beneficiaries. Donors who are seeking a reliable amount of income find the fixed payout rate attractive.

    Some supporters compare the benefits of a charitable remainder annuity trust with a charitable gift annuity, which also provides fixed income.
    Choosing Your Trustee

    Elderhostel can serve as trustee for both types of trust. We are happy to consult with you and your advisor, and welcome the opportunity to discuss with you whether the circumstances are appropriate for Elderhostel to serve as the trustee. Many donors make arrangements for a bank, their investment firm or another advisor to serve as the trustee of their charitable remainder trusts.

    As with any matter of this nature, we suggest you consult your attorney or tax advisor. The information presented here is not intended to be legal or tax advice.
    CONTACT US

    Please contact our office for information on gifts that can help you support Elderhostel and lifelong learning and provide significant benefits to you.
    Elderhostel Planned Giving
    11 Ave de Lafayette
    Boston, MA 02111
    Phone: 877-737-0664 (toll free)
    Email: PlannedGiving@roadscholar.org
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