A Charitable Remainder Trust gives you, or people you designate, an income for life or a term of years, and then gives the balance of the trust’s assets to the charities of your choice.

A Charitable Remainder Trust (“CRT”), whether set up in life or in a will, gives you, or people you designate, an income for life or a term of years, and then gives the balance of the trust’s assets to the charities of your choice. To create a CRT, you decide: (1) how much and what type of assets you want to put into the trust; (2) how much income you want to receive each year from the trust; and (3) whether you want the income you receive to vary each year or to be a fixed amount. You also select a trustee. The trustee can be a bank, an attorney or CPA, or a trusted friend.

There are two basic types of CRTs: the charitable remainder annuity trust, referred to as a “CRAT,” and the charitable remainder unitrust, often called a “CRUT.” A CRAT pays out the same dollar amount every year to the income beneficiaries, while a CRUT pays out a fixed percentage of the fair market value of the trust’s assets, revalued annually. So, if you want to receive a set dollar amount each year no matter how the investments of the trust perform, you might prefer the CRAT. If you think the assets of the trust will increase over time or are concerned about inflation eating away at your income, then you may prefer the CRUT.

Another thing to consider in choosing between the CRAT and CRUT is whether you will be donating all of the assets to the trust when it is set up or if you want to add amounts to the trust over several years. With a CRAT, you must donate all of the assets to the trust when it is established and you cannot add to it later. With a CRUT, however, you can add more assets to the trust at later dates. We currently have a donor who owns a lot of property. He set up a CRUT so that he can donate one parcel of land each year for the next few years. Another donor wanted a CRUT because she had one major asset to donate, and she liked knowing exactly what her annual income from the trust assets would be.

You also can choose the dollar or percentage of income you will get each year from your CRT within limits set by the IRS. Your charitable income tax deductions will be higher, or course, if you choose a lower payment or lower percentage. When you receive your payments from the CRT, the income will be taxed based on the historical pattern of how income in the trust was earned.

Why should you consider a CRT? With a CRT, you can get the following benefits:

• Income tax deduction for a portion of the current value of the trust assets;
• Pay no tax on gains when you give securities or other assets that have appreciated in value;
• Eliminate estate taxes and settlement fees;
• Increased income if the trust investments yield more than the donated property;
• Freedom from investment worries;
• Secure investment management on the assets you give.

Select multiple charitable beneficiaries, such as your local Scottish Rite Foundation, the House of the Temple Historic Preservation Foundation, Inc., the Scottish Rite Foundation, Southern Jurisdiction, and your other favorite charities.

A lot of people choose the CRT because they want to give to several causes, Masonic and non-Masonic, and the CRTs are a great way to accomplish that desire. Charitable remainder trusts, set up in life or in your will, are wonderful ways to benefit the Scottish Rite charities. If you are interested in setting up a charitable remainder trust to support the Scottish Rite’s RiteCare Childhood Language Program, scholarships, or natural disaster relief efforts, or to preserve the House of the Temple, or your local Scottish Rite Foundation, please contact Barbara Golden, Director of Planned Giving at 1-866-448-3773 or Earl Ihle, Director of Development, at 1-866-748-3773 for additional information.

- Our Development Team -

Barbara G. Golden, Esq., is the team's Director of Planned Giving. Barbara is an attorney with experience in tax, corporate, and commercial real estate law. She managed a non-profit legal services organization for several years and has extensive experience in fund-raising, grant writing, and program operations. Contacts: Tel. 202-777-3163; Fax 202-884-0183; or call 1-866-GIVESRF (448-3773) Toll Free; bgolden@srmason-sj.org.

Earl E. Ihle, Jr., 33°, is the team's Director of Development. He has been a member of the Fraternity for 30 years and served in 1978 as Master of Lafayette Lodge, #111, Baltimore, Maryland. He is also a member of Boumi Shrine Temple in Baltimore, the York Rite, and a dual member of the Scottish Rite Valleys of Baltimore and Washington, D.C. Contacts: Tel. 202-777-3143; Fax 202-884-0183; or call 1-866-RITECARE (748-3227) Toll Free; eihle@srmason-sj.org. Dr.Thomas M. Boles, GC, is the team's Advisor on Philanthropies. A member of the Los Angeles, San Francisco, and Santa Ana Valleys, he has worked extensively in fund-raising for children's programs throughout our Fraternity. Contacts: Tel. 562-691-4227; Fax 562-691-5327; or call 1-800-SRMASON (776-2766) Toll Free; tboles@srmason-sj.org.