Another way to provide income for yourself and/or others is by establishing a Charitable Remainder Trust (CRT). With a CRT, you transfer assets (usually cash, securities, or real estate) to a trust, which is individually tailored to your objectives, to provide income to you and/or others for a term of years or lifetime. At the termination of the trust term, the principal remaining is distributed to Lighthouse Guild. Also, you receive an income tax deduction based on the fair market value of the assets at the time they are contributed to the trust.
There are two types of CRTs: a charitable remainder annuity trust and a charitable remainder unitrust. An annuity trust provides fixed payments to the income beneficiary whereas a unitrust provides payments that vary over time because they are a percentage of the value of the trust assets, revalued each year.
How it works
- You irrevocably transfer cash, securities, or other property to a trust.
- You receive an income tax deduction and pay no capital gains tax. During its term, the trust pays a fixed amount each year to you or to anyone you name.
- When the trust ends, its remaining principal passes to Lighthouse Guild.