Larry Crandell, the one and only “Mr. Santa Barbara,” raised more than $250 million for charities throughout his community over four decades as the “preeminent emcee.”
This article was originally published by the Santa Barbara News Press on May 13, 2023.
He explained his love for giving brought “psychic income, which is priceless and will come back to you tenfold!”
Giving of your time, talent and treasure is so important!
Once the decision is made to give, it is important that you choose the most efficient and effective vehicle. In the realm of philanthropy and estate planning, a Charitable Remainder Trust offers a unique opportunity to make a lasting impact while ensuring financial security for the donor and their loved ones.
A CRT is a powerful estate planning tool that allows individuals to donate assets to a charitable organization, receive tax benefits, and generate income for themselves or their beneficiaries during their lifetime.
A Charitable Remainder Trust is a legal arrangement where assets are transferred into an irrevocable trust, with the income generated from those assets being paid to the donor or designated beneficiaries for a specified period or for life. After the trust terminates, the remaining assets are donated to a charitable organization or foundation of the donor’s choice. CRTs provide a win-win situation by combining philanthropy with financial planning. Many charitable organizations will cover the legal costs for the trust and planning process.
Tax benefits are a significant part of establishing a Charitable Remainder Trust. When the assets are transferred into the trust, the donor can receive an immediate income tax deduction based on the present value of the CRT interest. By donating appreciated assets, such as stock or real estate, donors can also avoid capital gains tax on the appreciation.
A key feature of the CRT is the ability to generate income for the donor or beneficiaries.
The trust assets are invested, and the income generated is paid out to the donor or beneficiaries as regular income. This can be especially beneficial for individuals who rely on the income from their assets to cover living expenses. The payments can be structured as either a fixed amount (Annuity Trust) or a percentage of the trust’s value (Unit Trust).
Charitable Remainder Trusts enable individuals to support charitable causes close to their heart. By designating a charitable organization or foundation as the ultimate beneficiary of the trust, donors can leave a lasting legacy while supporting the causes they care about. It allows individuals to make a substantial impact on charitable organizations and contribute to a positive change in society.
Establishing a CRT requires careful planning and consideration. Donors need to assess their financial situation, long-term goals and the potential impact on their estate. Professional advice from estate planning attorneys, financial advisers and tax experts is crucial to ensure the trust is set up correctly and aligns with the donor’s intentions.
A Charitable Remainder Trust gives the donor tax deductions, income for the life of the donor and/or beneficiaries, as well as helping a great cause that the donor is passionate about.
The biggest benefit, however, might well be the priceless “psychic income” one can receive from giving.
Give of your time, talents and treasure. And stay the course!