A way for benefactors to gift your nonprofit and their heirsMany contributors face a dilemma: They would like to give a substantial charitable gift but don’t want to reduce the inheritance planned for their heirs. A wealth replacement trust allows a contributor to give a meaningful gift to both their heirs and your nonprofit organization. Bremer can help your nonprofit organization administer a wealth replacement trust, providing expert management of the invested funds and experienced, professional administrative services.
Contact a nonprofit business banker
at the Bremer office nearest you.
To create a wealth replacement trust, contributors use a portion of the income from a charitable remainder trust to buy a life insurance policy. Upon the death of the contributor, the charitable remainder trusts assets pass to the nonprofit organization, and the life insurance policy income passes to the contributor’s heirs.
By combining the financial and tax benefits of the charitable remainder trust and life insurance, the wealth replacement trust allows a contributor to:
- Receive a steady income for life or a term of years
- Take an immediate charitable deduction
- Increase income from a low-yield holding
- Eliminate investment responsibilities
- Avoid or defer capital gains tax on appreciated assets used to fund the trust
- Provide a sizable gift to a nonprofit organization
- Increase the net inheritance passed to heirs