The many variations of trusts include living trusts, testamentary trusts, non-charitable trusts and charitable trusts. Although templates are available, trust documents can be quite complex with important differences affecting donors, their families, and the Foundation and necessitate the services of attorneys to create and or review.
A. Living or testamentary trusts may include bequests to the Foundation. There is no minimum dollar amount.
B. Charitable lead trusts may provide an income to the Foundation with the principal to be returned to the donor, his children, his grandchildren or another charity and be used as a tool to minimize estate taxes. Minimums are usually $500,000 to $1,000,000.
C. Charitable remainder trusts most commonly provide an income to the donor (or any persons named in the trust) with the principal or remainder left to the Foundation. These trusts provide a federal income tax deduction and avoid probate. Minimums are $50,000 to $100,000. Payment rate minimum 5%.
Each trust is a separate entity whose investments should be managed prudently for income, growth or preservation of principal. If principal is depleted, no more money is available for income designees or the remaindermen the persons or charitable organizations who will eventually receive the asset.
For more information, please contact:
Carol Widmer, CFP
Director of Planned Giving
559.278.8337
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