Charitable Remainder Trusts

A Charitable Remainder Trust (CRT) allows you to irrevocably transfer ownership and management of assets while keeping the income generated by those assets. A donor may use stock, securities, cash, or real estate to establish a CRT benefiting Covenant House California. The income generated by the CRT may come to you, or to others you may designate, for a set term of years or for life. This legal structure is documented by a legal trust agreement spelling out the applicable terms and conditions. Once the CRT has terminated, Covenant House California may then use the remaining assets for our ongoing efforts to rescue children from a life of exploitation on the streets.

Each trust is designed to meet your individual objectives, such as:

• providing regular income for you, your family, or your designated beneficiary
• relieving you or your heirs from costly and burdensome asset management
• gaining professional asset management
• qualifying for an income tax deduction in the year of your gift
• reducing your estate taxes
• providing a generous gift in support of Covenant House California's mission

A trust often provides greater flexibility than a gift annuity, but it does require a larger investment ($50,000 minimum, as opposed to the $5,000 minimum for a gift annuity or charitable retirement annuity). You may select the type and amount of payment (fixed or fluctuating with the market). The investment strategy and taxable character can also be tailored to meet your needs.

If you are interested in further exploring our Trust options, please contact us or have your attorney or financial advisor call. We would be delighted to assist you in establishing a trust to generate lifetime income for you and long-term benefit for our kids.