Oct. 11, 2022
You’ve worked hard and created a modest, but comfortable living. You have always supported charitable causes closest to your heart. You want to leave something important behind in this world, but where do you start?
Understanding the options that are available can be challenging, but Aloha United Way offers guidance in Planned Giving. One of the top recommendations is to set up a Charitable Remainder Trust, or CRT. A CRT offers amazing benefits to donors and the community alike.
1. Increase your retirement income
If you set up a Charitable Remainder Trust, you may enjoy the added benefit of additional retirement income thanks to receiving interest from the trust account. This additional income comes from no additional investment, but utilizes the funds you placed in the trust.
2. Improve your tax outlook
Donating to charities from the trust can improve your tax outlook significantly without impacting your bottom line. If you happened to sell a property and used those funds to set up the Charitable Remainder Trust, you can also avoid paying capital gains taxes. Each case should be assessed individually with consultation by a financial advisor and tax professional.
3. Designate to multiple charities
There is no limit on the number of charities that you can designate as beneficiaries when you set up your Charitable Remainder Trust. If you have a love of animals, but your husband prefers another charity, the trust can be used to support both. With the assistance of a professional, you may also change designations later.
4. Simplify your life
Retirement is freedom and many people look at retirement as a way to simplify their lives. If you own more than one property and happen to use the second as a rental unit, you understand the hassle of finding reliable renters, paying GE Taxes and property taxes. It’s not getting any less expensive to maintain a property either. You can set up your Charitable Remainder Trust by consulting a financial advisor and attorney in advance of selling your property. Simplify your life.
5. Easy to set up
While you can’t set-up a Charitable Remainder Trust on your own, it’s easy with a bit of help. Aloha United Way’s Planned Giving professionals can introduce you to financial advisors, estate planners, and attorneys who are well-versed and experienced in setting up Charitable Remainder Trusts. AUW has an incredible local network that you can trust and rely on as you plan your lasting legacy. Read a testimonial from an O‛ahu couple who were able to set up a trust that supports their favorite nonprofit causes.
If you are interested in understanding more about Charitable Remainder Trusts or other planned giving options, please contact Ellen Kazama, Director of Major Gifts and Donor Relations today at ekazama@auw.org or visit our planned giving page.