A charitable remainder trust is a separately managed and invested irrevocable trust. It may pay you or persons of your choosing an income for life or for a term of years. You may fund such a trust with cash, securities, real estate, or even tangible personal property. The income must be a minimum of 5%; and if the trust is for a specified term, it may not be longer than 20 years. At the end of the trust term, the principal of the trust is distributed to BCD. You may choose the trustee of a charitable remainder trust.

Example:
Amanda Conrad would like to establish at BCD a named scholarship in honor of her family. Ms. Conrad owns stock, purchased 20 years ago for $20,000, now worth $100,000 which pays her 2% income per year. Ms. Conrad decides to transfer the stock into a charitable remainder unitrust. The trust sells the highly appreciated stock free of any capital gains tax. The trust will pay her (or whomever she chooses) an income equal to 5% of the trust's value annually. At the termination of the trust, the Conrad Scholarship will be fully funded.

For more information about charitable remainder trusts, please contact your tax advisor.