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Planned gifts are an important way donors can protect their assets and make an important impact on Good Counsel’s future. There are many planned giving arrangements, the following:
Charitable Remainder Unitrust
Charitable Remainder Annuity Trust
Charitable Lead Annuity Trust (CLAT)
Charitable Lead Unitrust (CLUT)
Charitable Gift Annuity
Please consult with a financial advisor before making
planned gift commitments.
Charitable Remainder Unitrust (CRUT):
This type of charitable trust provides an annual
straight percentage payout that is based on the
fair market value of the assets valued annually.
Therefore the payout will increase or decrease based
on the appreciation or depreciation of the market
value. A CRUT can accept additions to the trust
at any time.
Charitable Remainder Annuity Trust (CRAT):
This type of charitable trust provides an annual
payout based on the market value of the assets as
of the date the trust is established. Therefore,
this payout will remain constant over time. Also,
a CRAT can only be funded at the time of acquisition
and cannot accept additions to the trust after the
initial contribution.
Charitable Lead Annuity Trust (CLAT):
A charitable lead annuity trust must have a fixed
dollar amount distributed at least as often as annually.
It does not have to state a dollar amount, but can
be based on a percentage of the assets as valued
at the inception of the trust. A guaranteed annuity
need not be the same dollar amount each year. As
long as the annuity payments are determinable from
the outset, the annuity may vary. What is not permitted
is an annuity formula that will produce a variable
annuity tied to a fluctuating index.
Charitable Lead Unitrust (CLUT): A unitrust
interest is a payment equal to a fixed percentage
of the net fair market value of the trust property,
determined annually and distributed not less often
than once a year. Unlike a charitable remainder
net income trust, there can be no reduction in the
unitrust payout from a lead trust if annual trust
income is less than the unitrust interest.
Charitable Gift Annuity: A charitable
gift annuity is a contractual arrangement between
the donor and the school. The donor transfers money
or property to the school in exchange for a promise
to pay an annuity to the donor and/or another named
beneficiary for a specified period of time.
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