How A Charitable Remainder Trust Works
Establish Trust with Cash, Securities or Real Estate
Make an irrevocable gift to your trust by donating cash, securities or real estate.
Receive income for life or for a fixed number of years, and a tax deduction the year you establish your trust.
Support National Parks
Designate National Parks Conservation Association as a charitable beneficiary of your trust. NPCA will receive the charitable amount of funds leftover when the trust terminates.
A charitable remainder trust is a powerful way to protect the national parks you love and cherish while receiving income for either a fixed number of years or for the rest of your life. You can even establish a trust that provides income for both your and your spouse's or partner's lifetimes.
Here's how the process works:
- Establish a trust with NPCA using $250,000 or more in cash or securities (or real estate that is valued at 350,000 or more).
- If named as trustee, NPCA will work with our legal and investment partners to draft trust documents and manage the trust.
- You or your beneficiaries receive income for life (must be 65 or older to receive payments) or for a fixed number of years up to 20 years.
- Your payments will be a percentage of the trust assets agreed upon when establishing the trust. Payment amounts will vary based on how the trust investments perform each year, but the percentage amount will never change. This amount is typically 5%, which is the statutory minimum.
- You may add to your trust at any time with additional gifts of cash, marketable securities or real estate.
- When the unitrust terminates (either at death of the last beneficiary or at the end of the trust term) the remaining balance will transfer to NPCA.
How You Benefit
Charitable remainder trusts not only provide tremendous support for NPCA and national parks, but they can provide substantial benefits to you as well. Here are a few of the ways you can benefit:
- Your trust provides payments for life or for a fixed number of years.
- You receive an immediate tax deduction for a portion of your contribution in the year you establish your trust.
- If you donate appreciated securities, such as stock, you may save on capital gains taxes. Additionally, those assets can be sold and reinvested without incurring capital gains at the time of transfer.
- If you donate real estate, and your home has appreciated in value since you purchased it, you may save on capital gains taxes.
- You make a gift that not only benefits you, but also supports the national parks you care about.