A Charitable remainder Trust – get income now, give later

With a charitable remainder trust you can build a meaningful legacy while receiving income for life or a term of years.

This gift arrangement allows you to place your assets into a trust that generates regular distributions in support of you, or the beneficiaries you name, for life or a term of years.

Income payments are made on a regular basis – annually, semi-annually, quarterly or monthly – as determined by you.

After the specified time span or the death of the last income beneficiary, the remaining assets are distributed to the designated charity, such as Meher Mount.

how it works

• Establish a charitable trust and make an irrevocable transfer of cash, securities or other appreciated property.

• The trust may last for the life of the beneficiary or for a term of years (up to 20 years).

• The annual annuity must be at least 5% but no more than 50% of the trust’s assets.

• At the end of the specified lifetime or term, the remaining trust assets are distributed to one or more charitable remainder beneficiaries, such Meher Mount Corporation.

Two main Types of of charitable lead trusts

There are two main types of charitable remainder trusts:

• Charitable remainder annuity trusts (CRATs) distribute a fixed annuity amount each year, and additional contributions are not allowed.

• Charitable remainder unitrusts (CRUTs) distribute a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made.

Tax Advantages

• Receive an immediate, partial charitable income tax deduction.

• Pay no capital gains tax at the time you transfer assets to the trust (tax will be paid on the regular income payments).

• A charitable remainder trust is a tax-savvy approach to using highly appreciated assets to make philanthropic gifts.

• By donating the asset, you also remove it from your taxable estate.

How to Make a Gift to Meher Mount through a Charitable remainder Trust

You will need to discuss your options with your advisors and to set up a Charitable Lead Trust through a third-party management firm. Information you will need about Meher Mount:

Legal Name: Meher Mount Corporation, a non-for-profit 501(c)3 organization
Address: 9902 Sulphur Mountain Road, Ojai, CA 93023-9374
Telephone: 805-640-0000
Federal Tax ID: 77-0236525

Once you have discussed your options with your advisors and made a decision to set up a Charitable Remainder Trust through a third-party management firm, see the suggested beneficiary wording below:

“I give, devise and bequeath to Meher Mount Corporation, a tax-exempt, not-for-profit, 501(c)3 organization at 9902 Sulphur Mountain Road, Ojai, CA, 93023-9374, Federal Tax ID: 77-0236525

a.     the sum of $___________;

b.    Or, __________% of the remainder of the Trust.”

If you wish to direct the funds to the Agnes Baron Endowment for Meher Mount:

“The property comprising this gift shall be used for the Agnes Baron Endowment for Meher Mount. If the needs for this charitable purpose no longer exist at some future date, the Board of Directors is authorized to use these funds in the best of interest of Meher Mount.”

“The assets comprised in this gift may, for investment purposes, be merged with the general investment assets of Meher Mount. This gift shall be entered into the books and recorded as the Agnes Baron Endowment for Meher Mount and shall always be so designated. The spendable income from, but not the principal, shall be used to further the purposes of Meher Mount in such manner as directed by the Board of Directors.”

If you wish to direct the funds to the Meher Mount General Fund:

“The property comprising this gift shall be used for the Meher Mount General Fund. The assets comprised in this gift may, for investment purposes, be merged with the general investment assets of Meher Mount. This gift shall be entered into the books and recorded as the Meher Mount General Fund and shall always be so designated. The spendable income from and the principal shall be used to further the purposes of Meher Mount in such manner as directed by the Board of Directors.”

In order to know your wishes and appropriately credit you with the gift, please contact Robert Turnage, Treasurer, upon the completion of the Charitable Remainder Trust at 916-837-3907 or robert.turnage@sbcglobal.net

Questions or Need More Information?

Conversations with Meher Mount’s planned giving team are always confidential and never imply an obligation. Robert Turnage, Treasurer for Meher Mount, will respond and provide the information you requested.

Share Your Plans to ensure your legacy

If you have already included Meher Mount in your plans (or intend to), please let Meher Mount know.  We can answer any questions your plan administrator might have.

Understanding your intentions will help Meher Mount make sure your gift is used exactly as you wish.  And we would also like to personally acknowledge your thoughtfulness and generosity.

Consult Your Personal Advisors

The information provided above is not to be construed as tax, accounting or legal advice and could change as tax laws change. You are advised to consult with your legal advisor, tax advisor, or professional estate planner to determine which options are best suited to your individual situation.