Charitable Remainder Trust PC1527-Print

ESTATE PLANNING

CHARITABLE REMAINDER TRUST

Charitable Remainder Trust

A Charitable Remainder Trust (CRT) is an irrevocable trust that enables you to convert highly appreciated assets, such as publicly traded securities or stock in closely held corporations, into lifetime income for yourself or a beneficiary and pass on the remaining trust assets after you die to a qualified charity. One of the major advantages of a CRT is that you receive an immediate charitable income tax

deduction for the present value of what the charity will receive when the trust terminates. In addition, the trust pays no capital gains taxes when the asset is sold and the trust reduces your taxable estate at death. ESTABLISHING AND FUNDING THE TRUST A Charitable Remainder Trust is created by a donor and typically funded with appreciated securities or real estate. The trustee you select then sells the asset at full-market value without incurring capital gains taxes and reinvests the full proceeds in income-producing assets. This removes the asset from your estate, so estate taxes on these assets are eliminated when you die. Depending on the structure of the CRT, you can receive a fixed percentage of the trust assets annually (Charitable Remainder Unitrust) or you can elect to receive a fixed amount (Charitable Remainder Annuity Trust) that can be for your lifetime or a period not to exceed 20 years.

BENEFITS OF A CHARITABLE REMAINDER TRUST   Effective means for diversifying highly appreciated assets   Reduces current income taxes with a charitable income tax deduction   CRT is exempt from tax on the investment income it retains   Trustee you select, not the charity, controls the assets for as long as you live   Offers protection from creditors for gifted assets   You can reserve the right to change the charity

ASSETS CONTRIBUTED TO TRUST

BALANCE TO CHARITY/ CHARITABLE FOUNDATION

Susan & John Doe

Charitable Remainder Trust

Charity

INCOME STREAM

Contact a Commerce Trust advisor who will work with your tax professional to help you generate a lifetime of income, reduce capital gains taxes and gift to a charity you care about using a Charitable Remainder Trust. 1-855-295-7821 | commercetrustcompany.com

Wealth | Investments | Planning Commerce Trust Company

Commerce Trust Company is a division of Commerce Bank. PC1528

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

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