Charitable trusts are irrevocable gifts to charity. To create a charitable trust requires a team approach of you, your financial advisor or accountant, your estate planning attorney, and the Foundation. There are several ways to create a charitable trust, and your team will help you prepare the one that fits your needs and wishes.
Charitable Gift Annuity
A gift annuity is an agreement between you and the Casa de la Luz Foundation. You give the Foundation a gift of cash, securities, or other assets. The Foundation pays you a fixed dollar amount during your life or the life of your beneficiary. The amount you receive is determined by the size of your gift. Some of this income is tax exempt. Upon your death, the remaining assets will transfer to the Foundation.
Charitable Remainder Trust
There are different types of charitable remainder trusts, such as a charitable remainder unitrust or a charitable remainder annuity trust. In general, charitable remainder trusts are funded by irrevocably transferring income-producing assets to the Foundation to be managed and invested by a trustee. You or your beneficiary will receive income payments for life or for a period of up to 20 years. A beneficiary of a charitable remainder unitrust receives income that will vary annually based on market changes. The beneficiary of a charitable remainder annuity trust receives fixed income for the life of the trust. At your death or the conclusion of the term of years, the remaining assets will transfer to the Foundation. You receive a federal income tax deduction for the charitable remainder value of your gift, and there is no capital gains tax when the trust sells the contributed property.
Charitable Lead Trusts
A charitable lead trust is created by irrevocably transferring income-producing assets to the Casa de la Luz Foundation to be managed and invested by a trustee. The income from these assets (either a fixed amount or a percentage of the trust principal as revalued annually) is paid to the Foundation for a term of years. Upon the conclusion of the term of years, the remaining trust assets are distributed to the trust beneficiaries (you or someone you have named).
Charitable trusts provide generous support to the Casa de la Luz Foundation mission.