Charitable Remainder Annuity Trust

A charitable remainder annuity trust is a way to make a gift that allows you to retain income from your contribution for life or for a period of time you specify. Trust assets are invested for payment of a fixed and regular income. A typical annuity trust might pay a 6% or 7% rate, depending on how the assets are invested. The percent rate is fixed when the trust is created and does not change during your lifetime. Income from the trust is taxed at ordinary rates. A tax deduction is allowed at the time you create your trust. The amount of the tax deduction depends on your age, payment percentage, and other factors. Trust assets pass to ETBU upon your death, the death of some other designated beneficiary, or after a prescribed period of years. The trust may be funded with cash or securities for a minimum amount of $10,000.

A charitable remainder annuity trust is a way to make a gift that allows you to retain income from your contribution for life or for a period of time you specify.

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