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Charitable Trusts

Charitable Trusts

Charitable trusts are remarkably flexible planned giving arrangements that provide a wide variety of tax benefits to the donors. Because these trusts are fairly complicated, they should be drafted by an attorney. Due to the set-up costs, they are used mostly for gifts of $500,000 and up.

There are two basic types of charitable trusts: Charitable Remainder Trusts and Charitable Lead Trusts.

Charitable Remainder Trusts

You may fund a charitable remainder trust (CRT) with many different types of assets, including cash, stock, real estate and even a closely-held business interest. The CRT, which has been specifically approved by the United States Congress, is an irrevocable trust. Once you fund the trust, you will receive income payouts from the trust for life. At the end of your life, the assets in the trust will go the Special Operations Warrior Foundation.

Since the trust is irrevocable, you receive an income tax deduction when you fund it, even though you enjoy the income for life. You can also defer capital gains tax and often reduce or eliminate estate tax. For details on how a Charitable Remainder Trust Works, click here.

Charitable Lead Trusts

A charitable lead trust (CLT) is usually used to reduce or eliminate estate taxes. After a donor transfers assets to a CLT, the trust will make annual payments to the Special Operations Warrior Foundation for a term of years, usually 15-25 years.

At the end of the term, the trust assets then pass back to family members, usually children or grandchildren. The annual payouts to the Foundation provide an estate tax deduction and greatly reduce the estate tax that would otherwise be levied on the assets placed in the trust.

For further information about these trusts, please contact us.

Questions? Contact John Elbare at 813-805-9400 or via email at
Updated August 10, 2009
Copyright © 2014 Special Operations Warrior Foundation, Inc. All Rights Reserved.


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