By setting up a charitable remainder trust, you are creating a lasting legacy helping to do the Lord’s work. Giving is an act of worship, another way to offer your Lord a thankful response for his never-failing gifts.
WHAT IS A CHARITABLE REMAINDER TRUST?
A charitable remainder trust is created when you transfer cash, securities (stocks, bonds, mutual funds), or real estate to WELS Foundation, but keep a specified income interest—usually for life. When the trust ends per your designations, the property in the trust passes to your designated beneficiaries, such as your church and/or synod. Like the stones placed by the River Jordan (Joshua 4:4-9), your gift is a means to share God’s grace with others well after you enter the Promised Land of heaven.
WHAT ARE THE FEATURES?
- Gift size: Minimum of $200,000.
- Irrevocable: Once established, a charitable remainder trust cannot be revoked.
- Payout rate: Five percent.
WHAT ARE THE BENEFITS?
- Lasting legacy: You can create designations that provide for the special needs of your heirs (i.e., college funds). When the trust ends, the balance will be used to continue the Lord’s work in your congregation or synod.
- Fixed payments for life: Your gift comes with the assurance of steady, lifelong payments.
- Tax savings: You receive an immediate income tax charitable deduction for a portion of the gift amount. Capital gains tax on appreciation is deferred at the time of transfer, leaving the entire value of your assets to generate future income.
- Payments: You, or those you designate, receive trust payments. These can be a fixed or variable amount.
- Increased cash flow: By funding your trust with low-paying assets, you might even increase your cash flow by making a gift.
- Peace of mind: Free yourself from investment worries by securing professional management of the assets you have.
- Flexibility: You can choose several income beneficiaries and the length of the trust term.
Charitable Remainder Trust FAQs
How is my charitable remainder trust invested?
Your charitable remainder trust is invested in the WELS Balanced Fund. The Balanced Fund seeks long-term capital growth and a low to moderate level of current income. It has a target asset allocation comprised of 60 percent equity and 40 percent fixed income and has a mid- to long-range investment time horizon.
When can I expect to receive my tax information (Schedule K-1/Form 1065) for my charitable remainder trust?
Typically, we will mail your K-1 so you receive it by March 31. Mutual funds are required to provide Form 1099 to investors by February 15, and your K-1 can’t be prepared until after we receive the 1099s from all underlying mutual funds. We will work to get the K-1 to you as soon as possible!
Can I receive my quarterly income payment electronically?
You can! Please contact us at WELSFoundation@wels.net or 414-256-3251 and we can assist you in setting that up.
I no longer need the income from my charitable remainder trust. Can I terminate the trust and make distributions to the ministries I’ve selected?
Yes, you can, and in doing so you may qualify for an additional income tax charitable deduction. Contact us at WELSFoundation@wels.net or 414-256-3251 to learn more.
What are the annual expenses of my charitable remainder trust?
Personalize a remainder annuity trust illustration for your situation.
Personalize a remainder unitrust illustration for your situation.