Charitable Trusts

Charitable Trusts

A trust is a highly effective way to contribute assets to the FMA Foundation. A trust allows you to keep an income for yourself and others. The FMA Foundation offers a full range of tax law compliant, life income gifts. Your age, assets, and income objectives will help you to determine the best option.

Benefits

• No immediate capital gains tax on gifts of appreciated property
• Provides immediate income tax savings
• May increase your current income by converting low-yield assets
• Removes assets from your taxable estate
• Diversify how large holdings of assets are invested
• Ensures assets are professionally managed
• Remaining assets of the trust will provide long-term benefits to the FMA Foundation

Charitable Remainder Trust

You may establish a charitable remainder trust with the FMA Foundation as a trustee with a gift of $50,000 or more. Depending on the type of trust you choose, you may use a variety of assets, including cash, publicly traded stocks, mutual funds or bonds, and real estate.

Charitable remainder trusts can be structured in different ways to meet your financial and charitable goals. Selecting the best vehicle for you requires careful consultation with your professional advisors and the FMA Foundation staff. Our staff can provide you and your professional advisors with additional information and specific illustrations of how a charitable remainder trust or other life income gift can work for you.

Charitable Remainder Unitrust

To create a charitable remainder unitrust, you place assets into an irrevocable trust and name a trustee (for example, the FMA Foundation or a bank trust department). The trustee invests the assets (which grow tax-free) and pays an amount for life or for a set term of years to the beneficiaries you select. When the last income beneficiary dies or the trust's term ends, the trust dissolves and the remaining assets (the charitable remainder) are given to the Foundation to be used for the purpose you designate.

The main feature of the charitable remainder unitrust is variable income. With this type of trust, you receive a lifetime or term income that is a percentage of your trustee's assets valued annually (a minimum 5 percent by law). Income payments increase or decrease with the changing value of the trust.

The unitrust provides a potential hedge against inflation as income payments may rise over time. In addition, the unitrust can be structured to defer income and maximize growth (for retirement planning, for example) or to handle specific types of assets.

Charitable Lead Trust

If you are facing substantial concerns about estate and gift taxes, the charitable lead trust can be an effective solution. A lead trust pays income to the FMA Foundation for a number of years after which the trust terminates and the assets are given back to your heirs. Such a gift allows you to support the Foundation now, with the assets later transferred back to your children or grandchildren at a greatly reduced cost.

Benefits:

• No estate or gift tax on growth of assets during trust's term
• Make a gift to the FMA Foundation while also providing for your family
• Transfer of property to family members with reduced estate and gift tax

How to Reach Us

For additional information regarding opportunities to support FMA Foundation, please call toll-free 888-394-4362 or email foundation@fmanet.org.