Donating highly appreciated assets to a charitable trust can be a tax-efficient way to support the causes you care about while enjoying certain benefits during your lifetime.  You receive an immediate charitable income tax deduction for the present value of the the assets expected to pass to the charity.  No capital gains tax is due when the appreciated assets are sold by the trustee.

A charitable remainder trust can pay you a lifetime income stream based on the value of the asset funding the trust.  The remainder of trust goes to the charities of your choice when the trust ends, either upon death or at the end of a designated period.

A charitable lead trust uses your assets to to provide a payment stream (a fixed amount or percentage of the trust) for charity during your life time. At the end of the period, the remaining assets pass to your heirs at reduced estate or gift-tax costs.

Depending on your personal goals, a variation of a charitable trust could very well be an efficient way of "preserving wealth" by avoiding taxes-directing those assets where you would choose.  For more information, please consult an advisor.

Charitable Remainder Trust (PDF)

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Last updated on May 28, 2019 by My Legacy of Faith