Discover a Gift That Is Truly Win-Win
Are you considering ways you can make a significant gift to the LGBTQ community? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust.
With a CRT, you can receive income each year for the rest of your life from assets—cash, stock or real estate—you give to the trust. Your income can be either variable or a fixed amount.
After your lifetime, the remaining balance of your gift supports the LGBTQ community.
Some advantages to a CRT with Horizons include:
- A partial charitable deduction, when you itemize
- Up-front capital gains tax relief
- Professional management of assets available
- Future estate tax relief
There are two ways to receive payments with charitable remainder trusts:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Legacy Giving in Action
Susan, 60, wants to make a significant gift to Horizons Foundation, and also wants to create an income stream for her future. Susan works with her professional advisors to create a charitable remainder unitrust that names Horizons Foundation as the beneficiary. The unitrust makes annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $250,000.
Susan receives $15,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $81,305* in the year she creates and funds the trust. This deduction saves Susan $22,765 in her 28 percent tax bracket.
Susan also has the benefit of knowing that when she no longer needs the annual payments, her assets will support Horizons Foundation and the LGBTQ community.
*Based on annual payments and a 2.4 percent charitable midterm federal rate. Deductions vary based on income earned.**Horizons does not administer CRTs but can provide information to donors interested in this option.
- Contact Deb Stallings at 415.398.2333 x103 or firstname.lastname@example.org to talk about supporting Horizons by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Horizons in your plans, please use our legal name and Federal Tax ID.
Legal Name: Horizons Foundation
Address: 550 Montgomery Street, Suite 700 San Francisco, CA 94111
Federal Tax ID Number: 94-2686530