WHAT IS A TESTAMENTARY CHARITABLE REMAINDER TRUST?
A testamentary charitable remainder trust, also known as a “give it twice” trust, is a trust funded after the Lord calls you home. Once funded, the trust provides quarterly income payments to your heirs for up to 20 years. When the trust ends, the remaining assets are distributed to the WELS or WELS-affiliated ministry of your choosing.
WHAT ARE THE FEATURES?
- Gift size: Minimum of $200,000, typically funded from a retirement account via beneficiary designation.
- Payout rate: Five percent for up to 20 years to your heirs.
- Charitable distribution: The trust remainder is distributed to the WELS or WELS-affiliated ministry of your choosing at the termination of the trust.
WHAT ARE THE BENEFITS?
- Flexibility: Because the trust is funded after the Lord calls you home, you maintain control of your assets throughout your lifetime.
- Providing 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 testamentary 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 testamentary 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 of your choosing. This charitable distribution can be made as a lump sum or used to fund an endowment fund—providing an ongoing source of support for your favorite WELS ministry.
REMAINDER ANNUITY TRUST ILLUSTRATION
Personalize a remainder annuity trust illustration for your situation.
REMAINDER UNITRUST ILLUSTRATION
Personalize a remainder unitrust illustration for your situation.