We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible. Karen and Stephen felt this way when they were establishing their estate plan. They wanted to pass their estate to family, but they also had a place in their hearts for their favorite charity.
Stephen: We were really having a tough time determining how to best split our estate until we received a mailing from the gift planning office at our favorite charity. The mailer talked about Testamentary Charitable Remainder Trusts (TCRT). The brochure really sparked our interest.
The TCRT was a new concept to Karen and Stephen.
Karen: I didn't realize that there was a way we could stretch our assets so that we could accomplish both goals of leaving an inheritance to our kids and making a substantial gift to charity.
Stephen and Karen established a Testamentary Charitable Remainder Trust as part of their estate plan. Their plan will transfer their retirement accounts to fund a TCRT after their lifetimes. This trust will provide a steady stream of payments to their son and daughter for a term of 20 years. At the end of 20 years, the trust balance will be transferred to their favorite charity to further their work.
Stephen: We are thrilled that we are able to use our retirement accounts during our lives and that when we no longer need them, we can use these savings to provide our family with payments for a long time and then support our favorite charity.
Is a testamentary charitable remainder unitrust right for you?
Retirement accounts, such as an IRA or 401(k), are great ways to fund a Testamentary Charitable Remainder Trust. The trust will provide income to family and also benefit charity. If you have questions about this gift option, please contact us
*Please note: The story, names and image above represent an example of the benefits of this type of estate-planning tool. They do not represent actual donors to GFA.