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© 2013 Greater Everett Community Foundation
2823 Rockefeller Avenue, Everett - Mailing address: PO Box 5549, Everett, WA 98206
(425) 212-4056 - FAX: (425) 212-4059
Charitable Remainder Trust
Planning for the future – for you and your community.Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, knowing that whatever remains will benefit your community.
How it works:
Earnings from your fund are used to make grants addressing community needs. Your gift—and all future earnings from your gift—is a permanent source of community capital, helping to do good work forever.
A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depend on the age of the recipient and the current annuity rate (as established by the Internal Revenue Service).
You can pick one of these options for your Charitable Remainder Trust:
A Gift that Pays
James Assad was retired and in his late seventies. The stocks he owned had high market values, but they paid limited dividends. In addition to increasing his personal income, James was interested in giving to the community in which he had lived his entire life, so he decided to transfer the securities to a Charitable Remainder Trust that eventually would create a fund with his local community foundation. “The income I receive from the trust is more than what I was collecting in annual dividends—by thousands of dollars. If I would have sold the stocks, I’d have paid a fortune in capital gains tax,” says James. James also receives an immediate charitable deduction and pays less tax on the trust distributions. “Plus,” he says, “I know that when I pass I’ve done something good. ” In time, James’ gift will create the Assad Family Unrestricted Fund to address ever-changing community needs.