Charitable Remainder Annuity Trust
What is a Charitable Annuity trust
A charitable remainder trust is an irrevocable split-interest trust in which a charity receives proceeds from the trust during its life—and other beneficiaries receive any remaining assets once the trust terminates. This provides assets to the nonprofit and still enables you to receive income throughout your life. Receiving this money can help you cover needed expenses. Or, if you don’t need those assets, you can give them to an organization that will put them to use. You can select one or more tax-qualified charities to receive the remainder interest. After you pass or the specified term ends, any remaining assets in the trust will automatically go to your designated charity.
How does a Charitable Remainder Annuity Trust Work
- Your property, cash, or other assets are transferred into an irrevocable trust.
- Assets given to a charitable trust can pay a fixed income to a designated non-charitable beneficiary.
- When the trust is completed, any funds remaining in the trust are donated to one or more previously selected non-profits.
As you explore your planned giving options, you should meet with a financial advisor who can help you weigh the pros and cons of different approaches. If you don’t already have an advisor, we often connect legacy donors with the team at Thrivent to discuss their wisest options. With a clear picture of your finances (and the broad range of solutions available), you’ll be well-positioned to make an informed decision.
Thrivent is a holistic financial service organization that provides financial advice, investments, insurance, banking and generosity programs to help clients make the most of resources they’ve been given.