A living trust, also known as a Revocable Living Trust or a Family Trust is a legal document that holds title or ownership to your assets and real property. When you create a Revocable Living Trust you transfer ownership of your assets to the trust. Transferring assets is typically called "funding." When you transfer title you DO NOT relinquish any control. You can still buy, sell, borrow or transfer. The Florida Baptist Foundation can serve as Trustee or successor.
After you pass away, your successor trustee or co-trustee will have the same responsibilities an executor would have if you would have prepared a will. However, since your trustee does not have to report to a probate court everything can be done more efficiently and privately.
Gifts to a Charitable Remainder Trust may be made in cash, but more often consist of highly appreciated stock, real estate or a closely held business interest. In exchange for a charitable gift, you receive a current tax deduction and the Charitable Remainder Trust pays income to the trust income beneficiary (usually you and your spouse as donors) for a fixed period or for life. At the end of the trust (which is usually your lifetime), the remaining assets pass to one or more of the charities you have chosen.
A private charitable fund administered by the Foundation and created for the purpose of managing charitable donations on behalf of an individual and/or family.
Donor advised funds offer the donor ease of administration, while still allowing him or her to maintain significant control over the placement and distribution of charitable gifts.
A charitable lead trust is a trust that pays annually a specified annuity or unitrust amount to one or more charitable beneficiaries for a specified term of years or for the life of a named individual or lives of certain named individuals. Upon termination of the annuity or unitrust period, the remainder interest passes to, or for the benefit of, one or more noncharitable beneficiaries.
If you are married and your combined estate exceeds the federal estate tax exemption, then a credit shelter trust could reduce your inheritance taxes. With a credit shelter trust, each spouse can use their full estate tax exemption, which could effectively double the exemption.
For example, consider a couple with $3,000,000 in total assets who wants to leave their property to each other if one should pass away. Upon the death of the first spouse, all property left to the surviving spouse passes tax-free. However, this leaves the surviving spouse's estate at $3,000,000. When the second spouse passes away, tax would have to be paid on the amount over the exemption ($1,000,000 taxed at a maximum marginal rate of 35% in 2008).
The Florida Baptist Foundation is ready and prepared to assist you in establishing a named fund or trust. Please contact us and we will be delighted to assist you immediately.
Mike Morgan, CFP®, CKA®, Vice President
Florida Baptist Foundation
(904) 346-0325, ext. 227
(800) 780-0325, ext. 227
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