There is some expense involved in establishing and maintaining a trust. Unitrusts are more commonly used than annuity trusts because they allow for appreciation and provide a hedge against inflation. Of course, unitrust assets can depreciate but that does not often happen. A Charitable Remainder Annuity Trust is similar to a Unitrust but the income is a fixed percentage of the initial value of the trust. Real Estate is often overlooked as an asset that can be used for funding a deferred gift and joining the Wheeler Society, yet there are many ways of using real estate to accomplish one's charitable objectives.
Some donors give real estate to receive a tax deduction.
When children or other heirs are not interested in inheriting a home or vacation home, it can be used for a charitable gift which provides a tax deduction while also reducing the value of their estate. Donors continue to maintain the property and pay all associated costs as long as they live there. Real estate can also be used to fund a life income trust. The property must be sold, so most people consider this option for vacation homes or when they begin thinking about moving from their primary residence. Everyone can join the Wheeler Society and we invite you to become a member today.