Charitable Remainder Trusts

This plan allows you to place funds in a trust from which your beneficiaries will receive guaranteed annual payments for the rest of their lives. The remaining principal passes to the District 207 Educational Foundation upon their deaths.

In order to qualify for gift tax benefits under the Internal Revenue Code, Charitable Remainder Trusts are required to pay a minimum of five percent of the income generated to the beneficiaries.

It should be noted that the establishment of a charitable remainder trust is irrevocable and once created cannot be taken back or changed by either the donor or the beneficiaries; however, the charity or charities that receive the remainder may be changed. Due to the strict requirements of the Internal Revenue Code, it is strongly recommended that an attorney or knowledgeable tax advisor be consulted if you wish to consider this type of trust.