FALL 2025
At a glance • What exactly is a trust? • What are my tax benefits with a charitable remainder trust (CRT)? • What type of assets should I include in my CRT? PREPARED FOR THE BENEFIT OF THE FRIENDS OF CHRISTIAN APPALACHIAN PROJECT
For many, the topic of financial planning, and more specifically the mere thought of estate planning, conjures feelings of anxiety and stress. But planning well for your family’s future while also preserving charitable giving priorities does not have to be complicated, nor do they need to be competing issues. There are, in fact, some relatively simple giving vehicles that can help accomplish both objectives. To determine whether these solutions may be right for you, consider the following checklist: q Do you find yourself with highly appreciated assets like stock or real estate? q Do you have a desire for more income over the course of your lifetime? q Do you have a desire to avoid or minimize capital gains tax while also reducing your estate tax liability? q Do you have a desire to help one or more charities that hold special meaning to you? q Would you give more money to a charity if: • You could get a tax deduction for simply pledging assets to your favorite charity after you die? • You could receive an annuity income stream from the assets that you pledge to your favorite charity? • You could pledge and sell appreciated assets without immediately paying taxes, and then reinvest the proceeds to produce a larger or more stable income stream?
If you checked even one of the boxes, you may wish to consider using your appreciated assets, like stock or real estate, to establish a charitable remainder trust. In the right circumstances, this instrument can increase income, reduce taxes, unlock appreciated investments, eliminate investment worries, and ultimately provide very important charitable support. Some of our donors have been very interested in making gifts through a charitable remainder trust so that they may provide a larger contribution to Christian Appalachian Project (CAP) than would be possible through an outright gift. This issue of the Planned Giving Newsletter focuses on charitable remainder trusts, which can provide both future benefits for CAP and current financial benefits for you, as the donor.