Usually you need a lot of money to set up a charitable remainder trust. You can set up this trust through accumulated assets over your lifetime of working and investing. The charitable remainder trust will allow you to receive an income for life or a specified period of time based on a percentage of assets in the trust. When you die, the charity will get the remainder of the trust. Additionally, if you give specific types of assets to a public charity at fair market value, you will get a tax deduction based on the market value of the amount, avoid paying a capital gains tax on any appreciated assets you donate, and may save on estate taxes.
Listed below are some opportunities and requirements/limits for charitable remainder trusts:
| Charitable Remainder Trusts Opportunities: | Charitable Remainder Trusts Requirements/Limits: |
|---|---|
| You can use your own assets for paying for long-term care and reduce your taxes. For more information, you should check this out with the Internal Revenue Service (IRS). | You need a lot of money. Few people have enough assets to get this type of trust. |
| You will leave something to your charity. | You might not be eligible for Medicaid. |