If you desire to use appreciated property that may produce little to no income to support you or your family—and the Lord’s ministry—while avoiding taxes, the charitable remainder trust (CRT) might be right for you. Some who fit this category include farmers, investors, business owners, and landlords.
Here’s how it works:
A WELS Christian giving counselor (CGC) can provide you with general information and work with your advisors and WELS Foundation to establish the charitable remainder trust. Once established, you transfer cash, securities (stocks, bonds, mutual funds), or real estate to the trust with WELS Foundation serving as trustee. Charitable remainder trusts can provide income to you for life and/or to your children for up to 20 years. When it ends, the remaining property in the trust passes to your designated charitable beneficiaries such as your church and/or synod.
Here are the steps:
- Meet with a Christian giving counselor and advisors; complete paperwork.
- Transfer assets to the trust.
- The trust makes payments.
- The trust ends; the property passes to the charitable beneficiaries.
The benefits include:
- You will receive an income tax charitable deduction and you don’t have to pay capital gains tax on the gift.
- You and/or your children receive an income stream (quarterly payments).
- You can continue supporting the Lord’s work after you go to heaven.
The minimum gift size is $200,000. WELS Foundation’s recommended payout rate is five percent. Payments can be a fixed or variable amount. You can choose several income beneficiaries and the length of the trust term. WELS Foundation as trustee manages the assets for the benefit of the income beneficiaries and charitable beneficiaries.
Watch a video about how WELS members Jerry and Lynn Zimpelmann support WELS mission work through their charitable remainder trust.