Charitable Remainder Annuity Trust

What it Means

A Charitable Remainder Annuity Trust, is a Planned Giving vehicle that entails a donor placing a major gift of cash or property into a trust. The trust then pays a fixed amount of income each year to the donor or the donor's specified beneficiary. When the donor dies, the remainder of the trust is transferred to the Asbury Foundation.

How It Works

1. You transfer cash, securities or other appreciated property into a trust
2. The trust makes fixed annual payments to you or to anyone you name
3. When the trust ends, the principal passes to the Asbury Foundation

Benefits

Allows you to…

• Receive an immediate income tax deduction for a portion of your contribution to the trust
• Pay no immediate capital gains tax on any appreciated assets you donate. A portion of the capital gains tax is spread over your life expectancy (As long as you are one of the beneficiaries)
• Diversify your investments
• Receive stable, predictable payments for life or a term of years
• Have the satisfaction of making a significant gift that benefits you now and the Asbury Foundation later

The content provided on The Asbury Foundation site is not offered as legal or tax advice. Examples of tax benefits may or may not apply to your own situation at the time of your gift. The Asbury Foundation urges donors to seek the advice of a tax advisor, attorney, and/or financial planner to make certain a contemplated gift fits well into your overall circumstances and planning. All material is presented solely as educational information and is not a solicitation or offer.