Site Search
News

Latest News / Ask a Trust Officer: Split-interest charitable trusts

Ask a Trust Officer: Split-interest charitable trusts

January 27, 2021

DEAR TRUST OFFICER:  I’m going to make a major charitable gift to my alma mater, but I also need to provide for my heirs. How can I balance these competing interests?

—BUDDING PHILANTHROPIST

DEAR BUDDING: Explore a split-interest charitable trust.  Such a trust has both private and charitable beneficiaries (hence, the “split”). You contribute assets to an irrevocable trust, either for a set number of years, a beneficiary’s lifetime, or the lifetimes of more than one beneficiary.  The private beneficiaries receive trust distributions that are defined either as a specific dollar amount annually (an “annuity trust”) or a specified percentage of the trust’s value, determined annually (a “unitrust”).  In periods of inflation, growth in asset values will lead to growing distributions to beneficiaries. In periods of economic uncertainty, on the other hand, the annuity trust alternative gives beneficiaries the peace of mind of a set number of dollars coming in, regardless of what the markets do.

When the trust terminates, the assets pass to a designated charity, your alma mater.  This facet of the plan gives rise to income, gift and estate tax charitable deductions, stretching the financial protection of your resources.  A charitable remainder trust may be established during life or in your will.  It can be especially appropriate if you wish to diversify a portfolio with highly appreciated assets.

Be sure to consult with your tax advisors before making any irrevocable decisions.

Do you have a question concerning wealth management or trusts?  Please contact Centier Financial Partners at 219-755-6110.

(January 2021)
© 2021 M.A. Co.  All rights reserved.

 

Previous PostNext Post

Disclosures

Check the background of this investment professional on FINRA’s BrokerCheck

Located at: 600 E 84th Avenue Merrillville, IN 46410
Phone: (844) 755-6600

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

These products and services are being offered through Cetera Investment Services LLC or its affiliates, which are separate entities from, and not affiliates of, Centier Bank or Centier Investments. Securities and insurance products offered by Cetera Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.

Click here to view Cetera Investment Services Privacy Policy, other Important Information and Business Continuity Plan.

This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com

Find a banking center near you. Click Here