Gift Planning: Charitable Trusts

What is a Charitable Trust? A charitable trust enables you to convert your non-income producing assets (such as real estate) into a source of reliable income, while avoiding the capital gains taxes you would otherwise pay on the sale of those assets. You may also receive additional income, estate and gift tax savings—while sharing the Word of God with countless souls in the future.

Charitable trusts may offer several valuable benefits, including:

  • Increasing income
  • By-passing capital gains tax
  • Receiving an income tax deduction
  • Gaining the opportunity to give income or principal to your heirs with reduced estate taxes.

Here are the types of charitable trusts we help provide most often:

Charitable Unitrust: A unitrust may accept real estate or other appreciated assets and by-pass the capital gains tax when the assets are sold. This trust pays a variable income to you or your beneficiaries depending on changes in the value of the investments owned by the trust. When you or your loved ones no longer need the income, the remaining assets are distributed to American Bible Society and your other favorite ministries.

Charitable Annuity Trust: This type of trust makes fixed income payments to you, your beneficiaries or both. When the trust matures, your remaining assets are distributed to American Bible Society and your other favorite ministries that have similar values. 

Charitable Lead Trust: A charitable lead trust allows you to pay income from certain assets to your favorite charities for a period of time. Then your family may receive your assets back, with large potential estate tax savings. This plan may provide an excellent solution for more wealthy families who wish to transfer assets from one generation to another, save tremendously on taxes and make an eternal difference with God’s Word.