How they work
A charitable remainder trust lets you convert highly appreciated securities or real estate into income for life or a term of years without incurring capital gain tax when the asset is sold. The appreciated asset is transferred into an irrevocable charitable remainder trust and is then sold by the trustee. The proceeds are reinvested, and you and/or another designated beneficiary(ies) receive income for life or a specified term of years. When the trust terminates, the remainder will be added to the KQED Endowment.
There are two types of charitable remainder trusts:
- Unitrust – The income you receive is a set percentage of the value of the trust’s assets, which is revalued each year.
- Annuity trust – Income payments are fixed and determined when the trust is set up. The annuity trust is most attractive to individuals who wish to avoid market risk.
We would be pleased to discuss the possibility of KQED serving as trustee of your charitable remainder trust. Typically, KQED serves as trustee for charitable remainder trusts that name KQED as the irrevocable beneficiary of $100,000 or more; that have an appropriate payout rate and whose life income beneficiaries are 60 or older.
We are always happy to consult with you and your advisor about the various charitable trust options and can provide computer modeling showing how the trust would work in your particular circumstances.
- Income for life or a term of years
- Potential for low-yielding assets to turn into more income
- A significant income tax deduction
- No capital gain tax at the time of the gift if appreciated assets are used to fund the trust
- Potentially reduced estate taxes and probate costs
- Professional, personalized investment management and trust administration by Kaspick & Company
- Membership in our Legacy Society
For more information
To request a brochure on charitable remainder trusts and/or to receive a personalized illustration of the financial benefits of establishing a charitable remainder trust, please complete our request for information form or contact us.