A Charitable Remainder Trust is a type of irrevocable trust that generates an income stream for you, as the donor, or your beneficiaries for a specified period of time. At the end of the trust term, the balance in the trust is gifted to the Blue Ridge Area Food Bank. Your gift will leave a legacy that reflects your values and ensures that many Virginians have access to the nourishing food they need for generations to come.
If you have a sizable estate and you are looking for ways to receive payments for a set period or for life, you might consider the creation of a Charitable Remainder Trust. These Trusts generate income to provide for living expenses for you or your beneficiaries, and they help you achieve your philanthropic goals. The donor is typically eligible for an income tax deduction in the year the trust is established. *
There are two main types of Charitable Remainder Trusts and each has its own benefits:
An annuity trust distributes a fixed amount each year that you choose when you establish the trust. Additional contributions to the trust are not allowed.
A unitrust distributes a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made. 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. Additional contributions can be made.
You can use the following types of assets to fund a Charitable Remainder Trust:
- Cash
- Appreciated Securities
- Closely Held Stock
- Real Estate
- Retirement Plan Assets
- Tangible Personal Property
For more information or to discuss the type of legacy you want to leave to benefit the Food Bank in time, please contact Karen Ratzlaff at (540) 213-8404.
Join The Will to End Hunger Society. Please let us know if you name us as a beneficiary by downloading the Statement of Gift Intention Form and returning it to us.
*Charitable Remainder Trusts are more complex than other legacy charitable giving options and should be established with the help of a legal, tax, or financial professional. The information provided here is for illustrative purposes only and should not be considered investment, legal, accounting, tax, or other professional advice.