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Step 1
Determine which kind of charitable remainder trust (CRT) is best for you to set up. Choose from a charitable remainder annuity trust, a charitable pooled income fund and a charitable remainder unitrust.
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Step 2
Enjoy the benefits of charitable remainder trusts when you donate assets into the trust. Under the structure of the charitable remainder trust, the trust will pay the beneficiary for a specified amount of time. After the established time has expired (such as the death of the income beneficiaries), the remainder of the estate assets are donated to the designated charity.
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Step 3
Recognize the benefits of no capital gains taxes when you set up a charitable remainder trust. For highly appreciated assets, the savings are immense, and the charity gets the full value of the transfer.
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Step 4
Check with the IRS stipulations on the minimum the CRT must distribute to be a valid charitable remainder trust. You must meet the requirements to enjoy the tax benefits of the CRT.
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Step 5
Contribute as much as you want to a charitable remainder trust. The limits to IRAs and 401(k)s do not apply to a CRT.
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Step 1
Choose a charity wisely. It is best to consult a tax adviser, attorney and/or an investment professional before making a decision to set up a charitable remainder trust. The investment choice you make must be in line with your assets, and the charity must be a valid charity with established goals.
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Step 2
Check out a charity through the local Better Business Bureau (BBB, see Resources below).
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Step 3
Research the charitable organizations of interest through the National Center for Charitable Statistics website (see Resources below). Read the profiles and statistics of all nonprofit organizations that submit a Form 990.
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Step 4
Establish your trust with the knowledge that you can never cancel a charitable remainder trust. You can, however, change the designated charity and the percentage to be distributed.














Comments
jamestaylor007 said
on 11/3/2009 Interesting... Brings-up more questions. Hmmm, I never knew their were so many different "Kinds" of Trusts, Funds, and Foundations.