Life Income Plans and Charitable Trusts

A “CRUT” is a means to make an irrevocable gift that offers an income beneficiary a variable quarterly stream of income (which is the most common choice of frequency, for example) while leaving the remainder to charity.

Who is it a good option for?

People with either cash or highly appreciated non-cash assets held for more than one year who want to turn it into an income stream and/or move it from their estate.

Financial Benefits

They move the asset from their estate, receive a partial charitable income tax deduction on the value, and receive a quarterly stream of income for a term or for life (for themselves and/or others). A software illustration (from a company called PG Calc, for example) can be run by ESNH to show what the tax deduction and income stream could look like.

What do interested parties need to prepare for a meeting?

Bring any and all information on the assets the person would like to donate (e.g. a financial statement, the original purchase amount, and more).

What is this?

A “CRAT” is a means to make an irrevocable gift that offers someone a fixed quarterly stream of income (the most common frequency) while leaving the remainder to charity.

Who is it a good option for?

It is good for people with either cash or highly appreciated non-cash assets held for more than one year who want to turn it into an income stream and/or move it from their estate.

Financial Benefits

The donors move the asset from their estate, receive a partial charitable income tax deduction on the value, and receive a quarterly stream of income for a term or for life (for themselves and/or others).  A software illustration (from a company called PG Calc, for example) can be run by ESNH to show what the tax deduction and income stream could look like.

What do interested parties need to prepare for a meeting?

Bring any and all information on the assets the person would like to donate (e.g. a financial statement, the original purchase amount, and more).

What is this?

A “CLAT” is a means to move one’s property out of one’s estate temporarily or permanently.  At the same time, a charity or charities will receive at least an annual fixed stream of income for a time period of up to 20 years.

Who is it a good option for?

This option is good for people with an estate tax problem (e.g. assets more than $13.61 million for individuals, or $27.22 million for a married couple) who own HIGH-COST BASIS assets (meaning they aren’t worth much more than they purchased them for), and the donors don’t need these assets now.  They are, of course, charitably inclined.

Financial Benefits

There is the potential for a charitable income tax deduction (for the Grantor-Retained CLAT version) and temporarily moving the asset from the estate.  The Non-Grantor-Retained CLAT version does NOT offer a charitable income tax deduction but instead PERMANENTLY moves the asset from the estate.

What do interested parties need to prepare for a meeting?

Bring any and all information on the assets the person would like to donate (e.g. a financial statement, the original purchase amount, and more).