Sep 142011

Sr. Goedken

By Sr. Laura Goedken

A charitable remainder trust is a vehicle that distributes income, makes a charitable gift and provides a tax incentive. This planned giving document can be a win-win for everyone.

When an individual sets up a charitable remainder trust, ordinarily with the assistance of an advisor, this person puts in trust a specific amount of money, normally $100,000 or more, names a trustee, a beneficiary and a charity as the remainder beneficiary.  

This is an attractive way to create additional income for the donor or others while generating immediate tax benefits for the donor and, ultimately, a gift to a charity. This is a useful vehicle for people who would like to reduce their taxable income.

To create a charitable remainder trust, the donor transfers cash or appreciated property to a trust created under applicable state and federal laws. Payments are made to the donor and/or one or more other persons for life. When the trust ends, the remainder is transferred to one or more charities. Since this vehicle includes a charitable gift, it is a good tax incentive.

Please contact Sister Laura Goedken, OP, director of development for the Diocese of Davenport, at (563) 888-4252 or for more information on how to include the Catholic Foundation, a Catholic school or your parish in your estate planning.

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