ARE THERE AGE LIMITATIONS IN ESTABLISHING A CHARITABLE REMAINDER TRUST?
To qualify for beneficial income tax treatment, including a charitable income tax deduction for the donor, a charitable remainder trust must be established such that at least 10 percent of the amount contributed to the trust will ultimately pass to the charity when the donor dies. The IRS has actuarial tables to determine whether, based on the donor’s age at the time the trust is funded as well as other factors, this requirement will be met. Accordingly, a trust with younger beneficiaries could have a problem satisfying this requirement. SFFFK can determine whether this will be an issue in the case of a particular donor and trust arrangement. WHAT BENEFITS DO I GAIN FROM A CHARITABLE REMAINDER TRUST? A charitable remainder trust is most useful when a donor has substantial resources and owns highly appreciated assets that earn a low rate of return (like stock) or cost the donor money to maintain (such as land). When the assets are transferred to the trust and then sold, no capital gains
