South Seattle Community College Foundation Charitable Remainder Trusts

Link to the search option and site index page.

Foundation > Charitable Remainder Trusts

Planning a Gift

Charitable Remainder Trusts

In a charitable remainder trust, donors transfer assets to a trust that invests the assets and then pays lifetime income to them, their spouse, or some other designated beneficiary. The donor selects the rate of return from these income arrangements and also chooses a fixed or fluctuating annual payment to be made to the designated beneficiaries. Most trusts are set up to provide income to the donor and spouse, but can benefit successive generations as well as non-family members. After the final beneficiary passes, the South Seattle Community College Foundation would be able to use the remaining funds in the trust to benefit students and programs at the College.

Charitable remainder trusts are helpful ways to assure a reliable stream of income for life - thereby reducing the risk that you might outlive your retirement assets - while still providing for a generous charitable gift in the future. The remainder trust can also be a way to provide for a surviving spouse, children or even grandchildren while minimizing exposure to estate and other transfer taxes.

A partial charitable tax deduction is available that can lower your income tax now; your gift will also avoid taxation in your estate in the future. As a further benefit of a charitable trust, capital gains tax may be delayed or partially bypassed. The trust does not pay tax on the accumulated capital gain, but a portion of the capital gain will be assigned to the income beneficiary as distributions are received from the trust.

Donors who establish a charitable trust and those who intend to make other forms of planned gifts are recognized as members of the SSCC Foundation's Legacy Club. They are invited to special events and given an honored place on our rolls of donors.

Learn more about charitable remainder trusts. (If you have trouble opening this PDF document, please read PDF Help.)

Members of the development staff would be happy to provide you and your advisors with examples tailored to your personal goals. Please contact us.