A way to benefit your organization--and the beneficiaryA charitable remainder trust allows a contributor to make a meaningful gift to your nonprofit organization while at the same time providing for his or her own financial well-being. There are two basic types: the charitable remainder annuity trust and the charitable remainder unitrust.
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Charitable Remainder Annuity Trust
A charitable remainder annuity trust provides fixed payments to the contributor for his/her lifetime or a term of years, after which the remainder of the trust is distributed to your nonprofit organization or foundation.
Charitable Remainder Unitrust
A charitable remainder unitrust provides variable payments to the contributor for his/her lifetime or a term of years, based on the market value of the trust, after which the remainder of the unitrust is distributed to your nonprofit organization. A charitable remainder unitrust allows for additional contributions throughout the duration of the unitrust.
Both types of charitable remainder trusts offer the contributor:
- An income for life or a term of years
- An immediate charitable deduction for the value of the remainder interest that will ultimately pass to the charity
- A way to increase income from a low-yield holding
- Freedom from investment responsibilities
- Avoidance or deferral of capital gains tax on appreciated assets used to fund the trust
- Removal of the donated assets including any appreciation from the donor’s estate for estate tax purposes
- The ability to provide a sizable gift to a nonprofit organization
A charitable remainder annuity or unitrust administered by Bremer offers your nonprofit organization:
- Expert management of the invested funds
- Experienced and professional administrative services