What is a Charitable Remainder Trust?

Creation of a Charitable Remainder Trust during your lifetime can provide significant advantages for you, particularly when it is funded with highly appreciated property. This arrangement involves the irrevocable transfer of assets (most often stocks or real estate) to a Trust, retaining for yourself (or yourself and your spouse) an “annuity” payment for your lifetime or for a term of years, with the remaining assets of the Trust passing to charity at your death (or the death of the survivor of you and your spouse), or upon the expiration of the term of years. You are entitled to an immediate charitable income tax deduction for the present value of the charity’s future right to receive the trust assets. Additionally, if the Trustee of the Charitable Trust sells the appreciated assets which you transferred to the Trust, you are able to avoid the immediate imposition of capital gains taxes on that sale. The Trust will provide a benefit for you (or you and your spouse) for your lifetime and, at your death, the remaining Trust assets will pass to the charity without the necessity of probate and qualifying for an estate tax charitable deduction. To learn more about Charitable Remainder Trusts, please contact Larry Kraft, Director of Development, at 802-885-7644, or e-mail lkraft@springfieldmed.org.

 

IRA Chartiable Rollover

Development staff attended the annual meeting of the Planned Giving Council of New Hampshire and Vermont. One of the topics was an update on the IRA Charitable Rollover, presented by Daphne Moritz, Esq., of the law firm of Sheehey Furlong and Behm PC. The IRA Charitable Rollover was first enacted in 2006 and expired and was reinstated multiple times before being made permanent at the end of 2015. Individuals who are 70 ½ and over are required to take annual distributions from their IRAs, which are then included in their adjusted gross income and subject to taxes. But the IRA Rollover permits those taxpayers to make donations directly to qualified charitable organizations without counting them as part of their AGI, and consequently, without paying taxes on them. Since the provision was first enacted, Americans have made millions of dollars of new contributions to nonprofits that benefit people every day. If you have any questions about the IRA Charitable Rollover and how it could benefit Springfield Hospital, please contact your finan