A legacy charitable remainder or “give it twice” trust is funded after both parents (or a single parent) go to be with the Lord. In addition to any immediate gifts to children or other heirs, a portion of the estate is placed into a trust that pays five percent each year to children for a term of up to 20 years. When the trust ends, the remaining assets are distributed to designated charitable beneficiaries, such as your church and/or synod.
- Provides for your heirs: Instead of leaving a one-time lump sum inheritance, you can provide an ongoing source of income for your heirs for up to 20 years.
- Tax savings: Funding the legacy trust from a tax-deferred retirement account may provide additional tax benefits. Rather than having to distribute an inherited IRA within 10 years, the IRA can be used via beneficiary designation to fund a legacy charitable remainder trust with a 20-year payout period.
- A gift to ministry: At the end of the payout period, the trust remainder is distributed to the ministry (or ministries) of your choosing. This charitable distribution can be made as a lump sum or used to fund an endowment—providing an ongoing source of support for your favorite WELS ministry.
The minimum gift amount for a legacy charitable remainder trust is $200,000 funded through your estate planning documents such as your will and beneficiary designations (for example, your IRA).
Legacy charitable remainder trust illustration
In this video, WELS Christian Giving Counselor Rev. Tom Mielke and WELS Foundation Executive Director Jim Holm talk about the basics and blessings of legacy charitable remainder trusts.