Answers to Your Prospects' Questions: Charitable Remainder Annuity Trusts

• You will receive an immediate income tax deduction for your gift; pay no capital gains tax on the transfer of appreciated assets to the trust; remove a large asset from your taxable estate.
• You and/or other beneficiaries receive stable, predictable income for life or a term of years.

It depends on the age(s) of any children you name as income beneficiaries. Our interest in the trust must be at least 10% of the value of the assets you donate to it. This interest is calculated using the life expectancies of the income beneficiaries. Thus, the younger your children, the longer their life expectancy and the smaller the value of the charitable remainder. Even younger adult children may disqualify the trust.