In its simplest terms, a trust is an arrangement under which an individual transfers legal title to property to another (the trustee) who manages the property for the benefit of the individuals and/or organizations specified in the trust agreement. Trusts that pay an income to the creators of the trust for the rest of their lives and ultimately benefit Canterbury School are known as charitable remainder trusts.
Charitable remainder trusts can take one of two basic forms: a charitable remainder unitrust or a charitable remainder annuity trust. The principle difference between the types of trust is the nature of the payments to the life-income beneficiaries. Payments from a unitrust vary according to the investment performance of the trust. Payments from an annuity trust are fixed when the trust is created.
Each type of trust will generate income, plus an additional tax benefit is realized if you fund the trust with long-term appreciated securities. You will avoid capital gains tax on the appreciation, thus preserving more of the gift to produce income for you.
Click here to read more about charitable remainder trusts.
For additional information, please contact Director of Development Myrna Morgan at 260-436-8786 or mmorgan@canterburyschool.org.
