Supporting a favored charity can be gratifying – both personally and financially. By establishing a charitable trust, you may be able to:

• Reduce income tax
• Eliminate capital gains tax
• Lower taxes on your estate

Following are descriptions of the most popular types of partially charitable trusts. Each can be tailored to your specific financial and philanthropic goals.

Charitable Remainder Trusts are designed to pay annual income to the donor. Income earned by the trust goes to the donor and/or beneficiaries during the beneficiaries’ lifetimes, with the remainder going to charity upon the beneficiaries’ deaths. Two forms of charitable remainder trusts are:

• The Annuity Trust, which provides an annual income stream of at least five percent of the value of the trust based on valuation when the trust is funded.
• The Unitrust, which makes annual income payments of at least five percent of the value of the trust, revalued each year.
• Charitable Lead Trusts pay annual income (a percent of the value of the trust) to charity for a specified number of years, with the remainder ultimately passing to the donor’s beneficiaries. This type of arrangement is suitable if you wish to support a charity with income derived from assets you currently do not need, but wish for your heirs to own eventually.

If you’d like additional information about charitable trusts, estate planning, or other financial issues, Northern Trust would be pleased to assist you. Please contact your Relationship Manager or our office most convenient to you.

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		Make a difference in the community while streamlining your charitable giving with the Northern Trust Charitable Giving Program Read more about our Charitable Remainder Trusts To view PDF files you need the free Adobe Acrobat Reader installed on your computer.