The Charitable Remainder Trust is a gift of cash or appreciated property that can provide fixed or variable income to you or a loved one for a period of time or for life, can provide an income tax deduction, and can lessen or eliminate capital gains taxes. You can claim a tax deduction for the estimated portion of the assets that will go to charity upon death. After your lifetime, the assets remaining in the trust will be used to provide critical future support to the National MS Society as you specified. You receive one or more yearly payments equaling a fixed percentage of the fair market value of the asset, which fluctuates annually. The advantages of a Charitable Remainder Trust are many.
Donors generally benefit from income tax deductions and avoid capital gains tax.
Charitable remainder trusts are a good way to prepare for retirement since assets can be invested to earn a lower rate of return when a donor is younger and shifted to earn a higher rate to provide more income in later years 4. A donor creates a Charitable Lead Trust by transferring ownership of an asset to a trust that pays income to the National MS Society for a temporary number of years. The trust assets will ultimately return to the donor or named beneficiaries at the end of the specified trust period. The Charitable Lead Trust provides an attractive method to return assets to your control in later years, or reduces the gift and estate taxes on assets passed on to family members. You can name the National MS Society beneficiary for all or part of the proceeds of a life insurance policy you own, or name the Society owner and beneficiary of an existing policy that you no longer need.