Charitable Transfers

Question 1

Charitable Contributions and Transfers

Income to Charity

Answer 1

CLAT / CLUT (0%)
- income or estate tax deduction
- after a period of time paid to a non-charitable beneficiary

Private Foundation (5%)
- 30% income tax deduction
- payable to a charity or a private individual
- can continue for an indefinite time period

Question 2

Charitable Contributions and Transfers

Income to Donor until Donor’s Death
- Using a Trust

Answer 2

CRAT (5%)
- no additions
- payments fixed (lifetime or term certain)
- payable to any charity(s)
- 10% ending value

CRUT (5%)
- additions allowed
- payments variable (assets revalued annually)
- payable to any charitys)
• 10% ending value

Tax Benefits for Both
- income tax deduction based on PV of remainder
- not subject to gift tax
- at donor’s death paid to a charity

Question 3

Charitable Contributions and Transfers

Income to Donor until Donor’s Death
- No Trust Needed

Answer 3

Pooled Income Fund
- additions allowed
- payments variable
- (based on fund income)
- payable to a specific charity

Charitable Gift Annuity
- no additions
- fixed lifetime income
- payable to a specific charity
- charitable deduction based on gift less annuity

Tax Benefits for Both
- income tax deduction based on PV of remainder
- not subject to gift tax
- at donor’s death paid to a charity