Charitable Trusts06 April 2011
A Charitable Remainder Trust is established for the life of the donor (also trustor or grantor) and/or for the life of any beneficiary(ies) and is irrevocable. While there are certain changes that may be made, once the trust is established, it cannot be revoked. If it is desired, the income period of the trust can be established for a specified period of time not to exceed twenty years. The twenty-year maximum does not apply if the trust life is based on the life expectancy of the income beneficiary(ies).
A Charitable Remainder Trust is an attractive planning tool for the disposal of highly appreciated assets. While the assets revert to the charity rather than the heirs of the estate, the use of an irrevocable life insurance trust in conjunction with a charitable remainder trust could replace the asset's value for the heirs.
Charitable Lead Trust
A Charitable Lead Trust is a trust where the income is paid to the New Israel Fund during your lifetime (and, if you wish, the life of your spouse or other beneficiary or for a specified number of years) with the remainder thereafter to your beneficiaries. This is often utilized where you have no need for the amount placed into the trust and want to support the New Israel Fund and also benefit your children, grandchildren or other beneficiaries.
Note that with this type of trust the benefits to the son and grandchildren can (if the trust investments appreciate) exceed the original amount placed in the trusts in addition to all of the tax benefits realized.
One of the advantages of establishing a trust is that your heirs will avoid probate.
Note: The foregoing is designed to provide general gift, estate and financial planning information. If you have any questions, or if you and/or your financial advisor, tax advisor or attorney would like an appointment, without obligation, to consult with us with reference to your gift plans, please contact Steve Rothman at 415-543-5055 or via email at .
The information on this site does not constitute legal or tax advice. It is important that you consult with your financial or tax advisor before making any gifts, and certainly with your attorney before drafting any trusts or your will.
The New Israel Fund makes no representations, warranties or assurances as to the accuracy or completeness of the information provided herein, and are not liable for any damages related to your reliance thereon.
NIF is a charitable organization, registered in the United States, Canada and Great Britain. Contributions to NIF are tax deductible to the extent permitted by law in the United States.
Donors in Canada are encouraged to contact the NIF Canada office at (416) 781-4322 or by email at to arrange for your tax deductible gift.
Donors in Great Britain are advised to consult the appropriate legal or tax counsel.
At this time, only U.S. tax receipts are issued online.