Give more to the people and the causes you care about

Charitable trusts can provide tax and financial benefits to individuals, though they are more complex than other potential gift plans. You should consult your advisor to determine if one of these arrangements it is compatible with your overall financial plans.

Charitable Lead Trust

A charitable lead trust (CLT) allows donors to make a “temporary gift” of income to charities such as UTSA while passing asset ownership to individual beneficiaries. Lead trusts are used to reduce transfer taxes and ultimately pass ownership to family members.

WHAT IS IT?
A CLT is an irrevocable trust that makes payments to qualified charities, including UTSA, during the trust term, and then passes the remainder interest to named beneficiaries, perhaps including the donor. The charitable payments are either a fixed dollar amount (annuity trust) or a fixed percentage of annual trust assets (unitrust).

WHY IS IT USEFUL?
The charitable lead trust is useful in reducing overall taxes while passing assets on to family members or other non-charitable beneficiaries.

HOW DOES IT WORK?
The donor irrevocably establishes the trust by permanently transferring assets into the CLT. The value of the remainder interest is calculated at this time.

Charitable Remainder Trust

A donor creates a Charitable Remainder Trust (CRT) to provide income to named beneficiaries, and a remainder interest to charities such as UTSA. The donor enjoys an immediate tax deduction for the present value of the anticipated remainder interest when the trust is funded.

WHAT IS IT?
A CRT is an irrevocable trust that pays beneficiaries income during the trust term and then distributes the remainder to qualified charities, including UTSA. A CRT may be an annuity trust (CRAT) or a unitrust (CRUT).

WHY IS IT USEFUL?
A CRT is a flexible planning tool that lets donors convert assets to an income stream (often used to supplement retirement income) while making a charitable gift. A CRT can be funded with assets other than cash (such as stock or real estate).

HOW DOES IT WORK?
The donor transfers property to the trust and designates beneficiaries to receive annual income payments. The trust distributes the remainder as a charitable gift when the trust term ends.