The motivation to make a charitable gift is as varied as the people who make those gifts. But there is an unmistakable common thread - it's the heartfelt desire to make a difference. That difference may not be evident until future generations, yet this commitment to stewardship runs deep within our faith and lives.

With a charitable remainder trust, you can make a charitable gift during your lifetime to support the work of the Church and still receive lifetime income. You may also enjoy certain tax and financial advantages.

A charitable remainder trust is an irrevocable trust that provides you with payments for your lifetime, or a set term of years. These payments can be made to you or one or more income recipients. The Presbyterian Church (USA) Foundation manages the trust assets and makes the payments. After your lifetime, the remaining trust assets become available for the work of the Church, according to your wishes.

There are two types of charitable remainder trusts; annuity and unitrust. The primary difference is these two trusts is the method required to calculate the payments to you.

The annuity trust requires a fixed annuity payment, which must be at least 5% of the value of your gift. You determine the percentage when the trust is established. The amount you determine and the age of the income recipients will affect the amount of the charitable contribution and tax consequences related to your gift. Payments can be made annually, or more frequently.

Payments are fixed and determined according to your initial gift; no additions are allowed to the charitable remainder annuity trust. You may, however, establish a new annuity trust any time.

The unitrust payment is also determined as a fixed percentage (at least 50%), but is calculated using the value of the trust assets each year. You select the percentage when you make your initial gift. Since trust assets are re-valued each year, the trust payments will vary from year to year. Trust payments may increase over time if the value of the trust assets increase, either by additional contributions from you or the investment results. If trust income exceeds the annual payment amount, the excess increases the principle of the trust.

One variation of a unitrust distributes the stated percentage each year even if the trust income is less than the stated percentage. The principle of the trust will make up any income shortfall.

Another variation of unitrust pays only the trust income if the income is less than the stated percentage. Such a unitrust is best suited for a gift of non-liquid assets, such as real property.

The greatest benefit of a charitable remainder trust is the satisfaction that you are supporting a charitable mission cause, even after your lifetime. In addition, a charitable remainder trust offers other benefits.

• You are providing trust income for yourself and/or loved ones while supporting the mission and ministry of the Presbyterian Church (USA).
• In the year the gift is made, you may claim an income tax charitable deduction.
• When appreciated securities or real estate are transferred to a charitable remainder trust, the unrealized gain is not subject to capital gains tax should the trustee sell the assets; thus the full sales proceeds may be invested by the trustee to provide payments to you.
• The charitable deduction, in most instances, is based on the full fair market value, not lower cost basis of long term capital gain assets.
  
  

You determine the charitable beneficiary to receive the remainder of the trust when the gift is given. The trust may indicate a specific program or could be designated for use here the need is greatest.

Examples of possible beneficiaries or programs administered by a beneficiary you could designate in a charitable remainder trust include:

• The gift everyone can make - no minimum amount.
• Bequests can be made for a specific amount, a percentage, or residual (after all other bequests and expenses are deducted) of the estate.
• May be given outright to charity in a "lump sum" gift, or may establish a permanent fund to generate income to charitable beneficiary for years to come.

• Select the Presbyterian church, Institution, mission, or ministry you would like to help.
  
  
• Determine the dollar amount or percentage of your estate you would like to go to your charitable beneficiary upon your death.
  
  
• Structure your bequest as a permanent fund, a life income plan, or an outright gift