Charitable Trusts

There are as many different reasons for making a charitable gift, as there are contributors. Some give because of ideological commitment, some because of a desire to support the arts or sciences. Still others give out of compassion for the suffering of others.

Whatever the stated reason may be, the underlying reason most people give to charitable organizations is that they want to make a difference.
There are several tax benefits associated with charitable contributions as well. In fact, the tax laws specifically encourage charitable giving. A charitable gift in trust will enable you to realign your investments and provide you and your family with increased cash flow.

Also, making a charitable gift reduces your taxable estate, thus reducing the tax liability on your estate after you die.

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Remainder Unitrust

Charitable Remainder Unitrusts offer a way to donate principal, while retaining an income interest in your donation. A percentage of the total value (usually 6% to 10%) will be paid to you or to whomever you designate each year until death. As the value of the trust increases, your annual payout increases.

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Charitable Remainder Annuity Trust

Charitable Remainder Annuity Trusts offer a way to donate principal while retaining an income interest in your donation. A fixed dollar amount is paid to you or to whomever you designate each year.

The benefits of Charitable Remainder Trusts are:

1) No capital gains tax is paid if funded with appreciated property
2) Income tax deduction for the value of the remainder interest (actuarially determined to be available for the charity at the end of the trust term)
3) Income for life
4) Professional management provided by the North Side Bank & Trust
5) Estate tax and probate cost savings

The North Side Bank & Trust can coordinate with your lawyer, accountant and other advisors in assisting with the establishment of a Charitable Remainder Trust.

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