IMPACT GIVING: Trusts
A trust is an agreement under which money or other assets are held and managed by one person for the benefit of another person or entity. Living trusts are made during the lifetime of the trustor while testamentary trusts are established by will and become effective upon the death of the trustor. The primary purpose of a trust is to assure your heirs and/or beneficiaries will receive your property according to your wishes
There are various types of trusts that can be used to effect a gift to Grace of Christ Church including Charitable Trusts, Charitable Remainder Trusts, Insurance Trusts and others. Each is unique and has unique advantages for given situations Consequently, an attorney is needed to create the trust to help assure its legal purpose.
- Significant potential tax advantages to the trustor during life in savings of income tax or at death in savings of income and/or estate taxes.
- If created early, the beneficiary(s) can be made aware of the gift and can plan accordingly.
- Provides a certainty for the trustor that estate distribution will be accomplished according to his or her wishes.
- Trusts can be designed to fit unique circumstances of the trustor.
- A 65-year-old Grace of Christ Church member establishes a Charitable Trust made up of various assets and names Grace of Christ Church as beneficiary. The annual income (growth) is designated for the benefit of a 70-year-old brother until his brother’s death. The remainder will go to Grace of Christ Church. Result: current income savings to the Grace of Christ Church member and potential estate tax savings upon the member’s death.
Please contact your financial advisor to determine how comparable figures would apply based on your particular case.