Charitable remainder trusts (CRTs) provide income for yourself and/or loved ones and can provide donors with significant tax savings and the satisfaction of ensuring LA Opera’s future.
CRTs are typically created for gifts of $100,000 or more.
In addition to the income you will receive from the trust, you will also be entitled to a charitable income-tax deduction for the value of our remainder interest in the trust assets. Using an appreciated asset (such as publicly-traded stock or real estate) to fund the trust provides capital-gains tax savings, as well.
There are two main types of CRTs that provide income for one or more individual beneficiaries:
CHARITABLE REMAINDER ANNUITY TRUSTS
The annuity trust provides for payment of a fixed-dollar amount—annually or at more frequent intervals—to the designated beneficiary(ies). The amount must equal at least 5% of the initial fair-market value of the trust. At the death of the last income beneficiary, the remaining trust principal will be distributed to LA Opera.
CHARITABLE REMAINDER UNITRUSTS
The unitrust provides for annual payments to the designated beneficiary(ies) of a specified percentage—at least 5% of the value of the trust as it is valued each year. Since the value of trust assets may vary from year to year, the payments may also vary. At the death of the last income beneficiary, the remaining trust principal will be distributed to LA Opera.
HAVE QUESTIONS?
Contact our Planned Giving team at 213.972.3141 or legacy@laopera.org.
Disclaimer: LA Opera provides information intended to introduce certain concepts, and we caution prospective donors not to rely on it for any legal, tax, investment, or other purpose. We encourage those considering a gift to consult their professional advisors before making any gift.
