Due to inconsistencies in the data reported on the Current Distributions Schedule (Part III of Form 5227), all distribution information for charitable remainder trusts
is derived from the Accumulations Schedule (Part II).
Charitable remainder trusts
are further divided into annuity trusts and unitrusts.
While charitable remainder trusts
can potentially be profitable, Estroff and Carovano stated that those who typically donate do so because of a strong interest in philanthropy.
Figure J Noncharitable Distributions, by Charitable Remainder Trust
Type, Filing Year 2010 [All figures are estimates based on samples-- money amounts are in thousands of dollars] All charitable remainder trusts
Number Percent or amount of total Item (1) (2) Number of returns 110,762 N/A Total noncharitable distributions  4,811,993 100.
Exemption for Proceeds of Annuity Contract Should Not Apply to Exempt a Nonsettlor Donee's Interest in Charitable Remainder Trust
Arrangement or in Any Other Third-party Trust Arrangement Providing an Annuity Type Benefit: Based on the legislative history that the exemption for annuities is intended to apply to commercial annuity arrangements that are within the definition of life insurance, the annuity exemption should not apply to a third-party nonsettlors interest in a charitable remainder trust
or any other third-party trust that grants a beneficiary an annuity interest in the trust.
The Ruling holds that a Charitable Remainder Trust
may pay amounts to a Special Needs Trust for the life of an individual if (1) the individual is "financially disabled" (meaning they're unable to manage their financial affairs), and (2) the CRT and SNT combination conforms to one of the following three formats:
With a charitable remainder trust
, the assets provide a stream of income for a family for either the life of the donor or a number of years.
While charitable lead trusts (CLTs) first make a stream of payments to one or more charitable beneficiaries, then leave remaining trust assets to non-charitable beneficiaries, charitable remainder trusts
(CRTs) do the opposite.
Most charitable remainder trusts
have a payout rate of between 5 percent and 8 percent of the trust's net fair market value, depending upon the ages of the income recipients.
He said, 'I can give 25 percent of charitable remainder trust
that I am setting up.
However, unlike a charitable remainder trust
, a pooled income fund is not a tax-exempt entity.
Another alternative is to create a Charitable Remainder Trust
(CRT) for the residual retirement assets, which will shelter the assets from immediate taxation while providing an income stream for your heirs.