Charitable Remainder Trust

Charitable Remainder Trusts are legal instruments that enable you to make a gift to the Shepherd of the Lake Foundation and generate a stream of income for you during your lifetime or for your heirs once you pass away. The assets placed into a charitable trust are invested. The income generated enables a predetermined percentage to be given annually to you for your life or to your heirs for a set number of years.

Through gifting, you receive a current charitable tax deduction and may bypass capital gains taxes on any appreciated assets. When the term of the charitable remainder trust has ended, the remaining principal goes to support the Foundation.

The two most common types of Charitable Remainder Trusts are:

• A Charitable Remainder Annuity Trust pays a fixed dollar amount each year based upon the percentage value of the initial gift. It may only be funded with a one-time gift, which may not be real estate.
• A Charitable Remainder Unitrust pays a percentage of the trust annually and may accept additional funds over time. It may be funded with real estate. The charitable remainder unitrust pays a percentage of the market value to you or the beneficiaries you name. The trust assets are revalued annually.

The examples included on this website are for illustrative and educational purposes only and should not be considered tax or legal advice. Please consult with your tax or legal professional about proceeding with your gift plan. The Shepherd of the Lake Foundation is a 501(c)(3) not for profit organization. Our EIN number is 41-1638874.