A Charitable Remainder Trust (CRT) is a trust arrangement between you and a trustee that pays distributions to you for life or a specified term of years. At the end of the trust term, the remaining assets are distributed to Mosaic for use in carrying out its mission of supporting and advocating for people with disabilities.
Your benefits of establishing a charitable remainder trust include:
- Attractive current distributions - You and/or other beneficiaries of your choice will receive payments for life or a specified term of years, up to 20 years. You may designate yourself and your spouse or you may name your children, grandchildren or other loved ones as current beneficiaries.
- Immediate charitable deduction - You receive a charitable income tax deduction equal to the trust¡¦s remainder value for the year in which you make your gift.
- Bypass of capital gain taxes - If you make a gift of appreciated assets to establish your charitable remainder trust, you can bypass capital gain taxes. To take advantage of this benefit, you must place the assets in the trust before there is any agreement made to sell the assets to be contributed.
- Reduced or eliminated estate taxes and probate costs - When you and/or your spouse are the only current beneficiaries, the trust is not taxed to your estate. If there are other current beneficiaries, the savings generated by an estate tax charitable deduction can still be substantial.
There are different types of charitable remainder trusts that you can choose from based on your particular financial and charitable goals.
Charitable Remainder Unitrust (CRUT)
When you establish a CRUT, you and your trustee agree upon a payout percentage (minimum of 5%) of the trust¡¦s annual net fair market value. Because the value of the trust fluctuates from year to year, your payments will vary accordingly. You may make additional contributions to a CRUT.
Charitable Remainder Annuity Trust (CRAT)
A CRAT provides current beneficiaries with fixed payments of a specified amount (minimum of 5% of your contribution). The distributions are fixed and do not fluctuate from year to year. IRS rules prohibit additional contributions to a CRAT.
Individuals who designate The Mosaic Foundation to receive the remainder value of a charitable remainder trust become members of our Legacy Society, which recognizes those who embrace the mission of Mosaic by naming the organization as a beneficiary in their estate plans.
For more information about charitable remainder trusts or other planned gift options, please contact a Mosaic planned giving professional using the planned gift Information Request form. You may also write or call Mosaic at:
Mosaic
Planned Giving Associate
4980 S. 118th St.
Omaha, NE 68137-2220
877-366-7242 x1106 (toll free)