Turn Appreciated Assets Into Income and Lasting Impact
A charitable remainder trust can help you turn appreciated assets into an income stream for yourself or loved ones while ultimately supporting the ministry of The Christian and Missionary Alliance.
Give. Receive. Make an Impact.
Give
Transfer cash or appropriate appreciated assets into an irrevocable charitable trust.
Receive
The trust makes payments to you or other beneficiaries for life or for a specified term.
Impact
At the end of the trust term, the remaining assets support the charitable ministry you have chosen.
A Gift Designed for Today and Tomorrow
A charitable remainder trust brings charitable giving and income planning together in one strategy.
You Fund the Trust
You transfer cash, securities, real estate, or other appropriate assets to an irrevocable charitable remainder trust.
The Trust Manages the Assets
The trust may sell and reinvest appreciated property without requiring you to recognize the entire capital gain immediately at the time of the trust's sale.
You Receive Payments
You or other designated beneficiaries receive payments for life or for a term of up to 20 years, according to the trust terms.
Ministry Receives the Remainder
When the trust ends, the remaining assets pass to The Christian and Missionary Alliance or other qualified charitable organizations named in your plan.
Put Appreciated Assets to Work in a New Way
For the right situation, a charitable remainder trust can combine financial planning with meaningful generosity.
CRAT or CRUT?
Charitable remainder trusts generally take one of two forms. Your professional advisors can help determine which structure may be appropriate for your goals.
CRAT
Provides a fixed annual dollar payment based on the value of assets initially contributed to the trust.
Think: a payment designed to remain consistent.
CRUT
Provides a stated percentage of the trust's value, which is recalculated each year.
Think: payments that may rise or fall as the trust's value changes.
A CRT Has Specific Requirements
A charitable remainder trust is a sophisticated planning tool and must meet federal requirements to qualify.
- The trust is irrevocable; assets transferred to it generally cannot be taken back.
- Payments generally must be between 5% and 50%, subject to additional qualification rules.
- Payments may continue for one or more qualifying lives or for a fixed term of no more than 20 years.
- The calculated charitable remainder generally must equal at least 10% of the value contributed when the trust is funded.
- The appropriate trust structure, assets, payout rate, beneficiaries, tax consequences, and charitable remainder should be reviewed before the trust is established.
Before You Transfer an Asset
Timing and asset selection matter. If appreciated property is already subject to a binding or effectively prearranged sale, transferring it to a charitable remainder trust may not produce the intended tax treatment.
Some noncash assets may also require a qualified appraisal and additional tax documentation. Closely held business interests, real estate, debt-financed property, and other complex assets should be reviewed carefully before funding a CRT.
Income for Today. Kingdom Impact for Tomorrow.
A charitable remainder trust is more than a financial strategy. It can provide for people you care about today while setting aside resources that will one day help advance gospel ministry for generations to come.
Could a Charitable Remainder Trust Fit Your Plan?
Every situation is different. Our team can help you explore how your assets, income goals, charitable intentions, and stewardship priorities could work together.