Charitable Remainder Trusts
Like many, you may have wanted to help the spread of Dharma by supporting activities and services in your community. One method that may be beneficial for you in many ways is to establish a charitable remainder trust (CRT).
This will allow you to sell appreciated assets, defer capital gains tax and build a diversified portfolio. In addition, it will provide you with cash flow, which you could use in part to support the services of Tara Center and receive an income tax deduction at the same time.
To set up a CRT, you contribute assets, ideally appreciated ones, to a trust that will ultimately transfer them to the Center. Once the trust is funded, the trust pays annual amounts to you and/or one or more of your beneficiaries for life or for a fixed number of years, not to exceed 20.
Beneficiaries can include you, your spouse, children, friends and Tara Center.
A well-designed CRT has well-defined tax and economic benefits. You get a charitable income tax deduction when you fund the trust, based on the charity's 'remainder' interest in the trust, subject to all the normal income tax limitations on charitable deductions.
Contact your financial advisor and attorney for the legal requirements of such a trust. For more information, see the AARP practical points.