Charitable Remainder Annuity Trust

How it works

1. You transfer cash, securities or other appreciated property into a trust.
2. The trust makes fixed annual payments to you or to anyone you name.
3. When the trust ends, the principal passes to the Red Cross.

Benefits

• You receive an immediate income tax deduction for a portion of your contribution to the trust.
• As long as you are one of the beneficiaries, you pay no immediate capital gains tax on any appreciated assets you donate. A portion of the capital gains tax is spread over your life expectancy.
• You or your designated income beneficiaries receive stable, predictable payments for life or a term of years.
• You can have the satisfaction of making a significant gift that benefits you now and the Red Cross later.