Deferred Gifts: Charitable Remainder Trusts

A charitable remainder trust allows you to arrange your estate gift to International Teams now and receive an immediate tax receipt for it, while still benefiting from the interest income or use of the gifted asset while alive.

To establish such a trust, you must fund the gift to International Teams by irrevocably transferring the assets (money, securities, property, etc.) into a trust which is managed by a trustee which could include yourself, a lawyer, financial institution or other individual.

A trust document names the interest income beneficiary (normally yourself but including an alternate individual based on one life, joint lives, or a fixed term), and names International Teams as the "remainder beneficiary". You receive a receipt based on the net present value of the remainder interest.

Benefits of the Charitable Remainder Trust

• Receive an immediate tax receipt for the net present value of the remainder interest in the trust when the gift is made.

  (Note: net present value is based on the anticipated number of years you or another assigned beneficiary will receive the interest income from the trust, according to current fair market value and the appropriate annual discount rate.)

• Carry the excess tax credit forward for up to five years if your gift exceeds 75% of your net income in the year the gift is made

• Avoid probate. Charitable remainder trusts are less susceptible to being contested and provide privacy

For more information on charitable remainder trusts, please contact International Teams at 1-800-465-7601, 519-669-8844 or email us at give@iteams.org