Charitable Trusts

The use of charitable trusts can provide income to you plus an income tax deduction. The most popular forms of charitable trusts are the Charitable Remainder Unitrust, Charitable Remainder Annuity Trust and the Charitable Lead Trust.

HOW THEY WORK

· Securities or other appreciated property are transferred to the Unitrust. l_373082abcblocks1The Trust pays a percentage of the principal based on the annual value of the assets to you or your named beneficiaries. When the trust terminates, the remaining principal is paid to the Daughters of the Nile Foundation.

· Securities and other appreciated property are transferred to the Annuity Trust. The Trust then pays a fixed rate of income to you or your named beneficiaries. When the trust terminates, the remaining principal is paid to the Daughters of the Nile Foundation.

· Securities and other appreciated property are transferred to the Lead Trust. The Trust pays the income to the Daughters of the Nile Foundation for a specified period of time. When the trust terminates, the remaining principal is paid to your heirs.

BENEFITS WITH THE UNITRUST AND ANNUITY TRUST

· You receive income for life or a specified number of years.

· Income tax deduction for a portion of your contribution.

· Can make additional gifts to the trust.

WITH THE LEAD TRUSTS

· Income payments to the Foundation reduce the ultimate tax cost of transferring an asset to your heirs.

· The amount and term of the payments to the Foundation can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.

· All appreciation that takes place in the trust goes tax-free to the individuals named in your trust.

 

 


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