Center for Reduction of Religious-based Conflict

These are special trusts that pay income to family members. After all the income payments have been completed, the remainder is distributed to a qualified charity. The person establishing the trust may select the unitrust percentage, the persons to receive the income from the trust, and the charities which will receive the principal of the trust after all income payments are completed. The major benefits of this trust are (1) Bypass of Capital Gains Tax, (2) Increased Income and (3) a Charitable Income Tax Deduction.

When a Charitable Remainder Trust is created during the donor’s lifetime, he/she is entitled to a charitable income tax deduction, thus savings taxes immediately while still retaining the right income during his/her lifetime from the assets. If appreciated property is used to fund the trust (securities, real estate and the like), capital gains tax can be avoided. A donation of this sort offers the satisfaction of making a gift now while at the same time receiving a significant charitable contribution deduction as well as a lifetime income from the assets. There are several variations of this trust, so we suggest you seek the advice of your tax advisor as to which is more appropriate to your requirements.

These are trusts which separate the present and remainder interests of an estate. For instance, property can be divided by separating the future interest (the right to eventually receive the property, sometimes known as the remainder interest) from its present interest (the right to use and enjoy the property now).

Because most retirement plan assets are taxed twice at death (they are subject to both an estate and an income tax) many people think of them as a way to support charitable organizations in their estate plans. Also, unless a beneficiary is named in a qualified retirement plan or IRA account(s) and the owner dies before age 70 1/2, all assets must be distributed to the estate’s beneficiaries within 5 years after the owner’s death, possibly triggering large tax bills. A charitable beneficiary (among others) can be named in any qualified retirement account, as well as the method of pay-out.

Life insurance proceeds are normally included in an estate when determining estate taxes. An irrevocable life insurance trust lets the beneficiaries (including charitable organizations) benefit from the insurance proceeds and keeps the value of the insurance out of the taxable estate, potentially saving the family or other heirs thousands of dollars in estate taxes. This is a viable alternative only where the total estate is over $1.2 million if married, or $600,000 if single.

This trust is usually funded with low-yield highly appreciated stocks, buildings or land. The donor then selects the recipients, the annuity amount or a percent of the initial fair market value, to be paid over 1 or 2 lifetimes; and the charities to receive the trust principal after all income payments have been completed.

Because of the dramatic increase in property values over the last several years, the gift of unmortgaged and otherwise unencumbered real estate seems to be more and more popular with charities. There are several ways to accomplish this:

” An outright gift

” A charitable remainder trust

” A retained life estate plan

” A bequest of an inclusion in your will

” A retained life estate with gift annuity plan

” A bargain sale

Consult with your tax advisor as to the most appropriate approach to fit your needs.

Any donation of (for instance) shares of stock of the company before the closing of the sale of the business is generally considered by the US IRS as a charitable donation.

Stock and Mutual Fund Shares can be donated directly to the Center for Reduction of Religious-Based Conflict. This allows a donor in the USA to reduce US capital-gains taxes and to deduct the full value of the stock as a charitable donation to a US tax-exempt charity. This random listing of potential mechanisms for donations or gifts is not intended, nor should it be considered, as a solicitation of funds or legal advice therefore. For such advice, please consult with your attorney.