A Charitable Remainder Annuity Trust (CRAT) is a separately invested and managed charitable trust that pays you, and/or other beneficiaries, a fixed annuity for life or for a term of years (up to 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust.
By law no additional gifts to the trust are permitted once the trust is initially funded. After the annuity trust terminates, the balance or “remainder interest” goes to Josh McDowell Ministry to be used as you designate. You get flexibility to invest and manage your gift plan, and also the security of stable income.
You can receive stable, predictable income equal to no less than 5 percent of the original gift. At the same time you avoid all upfront capital gains tax on any appreciated assets you contribute to the annuity trust. So you will receive income that may be taxed favorably while you reduce your estate tax liability.
Starting Steps:
- Contact our office to let us know of your intention or if you have any questions.
- You transfer cash, securities, or other appreciated property into a trust. The required minimum for this type of gift is $100,000.(Needs verification)
- The trust makes fixed annual payments to you or to beneficiaries you name.
- When the trust terminates, the remainder passes to Josh McDowell Ministry to be used as you have directed.
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