About Charitable Remainder Trusts
A Charitable Remainder Trust (CRT) is a planned giving tool that allows donors to make a significant charitable impact while also providing financial benefits to themselves or their beneficiaries.
This type of trust is an irrevocable arrangement in which a donor transfers assets into a trust that is managed and invested by a trustee. The trust pays income to designated beneficiaries for a set number of years or for their lifetime, after which the remaining assets are distributed to charity.
Types of Charitable Remainder Trusts
Charitable Remainder Annuity Trust (CRAT):
Fixed income stream based on a percentage of the initial asset value
Income stream does not change over time
Charitable Remainder Unitrust (CRUT):
Variable income stream based on a percentage of the trust’s value, revalued annually
If assets appreciate over time, the income stream will also increase
Benefits
- Reduce or eliminate capital gains taxes
- Retain an income stream for yourself or beneficiaries
- Create a lasting legacy that supports your favorite ministry
How it works
- Transfer assets (such as cash, securities, or real estate) into a trust, which is managed by a trustee.
- The trust pays income to designated beneficiaries (such as you, your spouse, or other individuals) for a set number of years or for their lifetime.
- At the end of the trust term, the remaining assets are distributed to one or more charitable organizations.
- Receive an income tax deduction for the present value of the charitable remainder interest in the trust.
- You may also be able to avoid or reduce capital gains taxes on appreciated assets that are transferred into the trust.
Learn more about Charitable Remainder Trusts by starting a conversation with Lutheran Giving
As you explore this opportunity, we encourage you to consult with your financial and legal advisors to ensure it is the right choice for you.
We’re here to help you meet your goals!
Our team would be happy to speak with you in confidence about your giving goals, with no obligation.
Name: Sarah Callahan
Title :Executive Director
Phone: 402-342-5728
Email: info@lutherangiving.org
As Executive Director, Sarah provides charitable gift planning services to anyone wishing to support Nebraska Synod congregations and its agencies and institutions as well as any Synodical or Churchwide ministry. Sarah provides legacy presentations across Nebraska and consultation services to congregations wishing to form or build up an endowment fund. She also serves as the local representative of the ELCA Foundation’s Ministry Growth Fund.
Before joining Lutheran Giving in 2018, Sarah built a financial advising practice where she worked with families in Nebraska and Iowa with generational transition and estate planning. In her early career, she worked in fundraising and development. She holds a bachelor of arts in music and a master’s in business administration from Valparaiso University in Valparaiso, Indiana. Sarah earned the Accredited Estate Planner (AEP®) and Chartered Advisor in Philanthropy® (CAP®) professional designations from The American College of Financial Services.
Already included your favorite ministry in your estate plan? Let us know
More ways to make an impact
Gifts in a will or trust
Donations in your will or trust are (by far) the most popular type of planned gift. Learn more, or get help starting your will (for free!).
Beneficiary designations
Gifting assets not covered by your will — like 401(k) or IRA accounts — may help your heirs avoid unwanted taxes, even if you’re below the estate tax threshold.
Popular tax-smart gifts
Many people are increasingly choosing to give non-cash assets, so they can have a bigger impact at less cost to them.