Charitable Remainder Trusts

By establishing charitable remainder trusts at the Oklahoma City Community Foundation for two relatives, oilman and banker Jack Abernathy knew he was providing income for his family while eventually making a gift to one of his favorite charitable organizations.

As a Trustee of the Oklahoma City Community Foundation, Mr. Abernathy understood the important role the organization played in making charitable giving simple and forever. He especially like the charitable remainder trust, a vehicle he described as "jumping the generation gap," in other words a way to provide for someone now and yet avoid burdensome inheritance taxation.

The Oklahoma City Community Foundation is able to facilitate of number of trust options including the following:

Charitable Remainder Trusts allow a donor to place assets in a trust that pays annual income to you or a beneficiary for life or a term of years. You can avoid capital gains tax on the donated assets and also receive an income tax deduction for the fair market value of the remainder interest of the trust. In addition, the trust is removed from the estate, reducing subsequent estate taxes. Upon termination of the trust, the remaining assets will benefit an existing endowment or advised fund as directed by the donor.

Charitable Lead Trusts allows a donor to transfer assets to the Oklahoma City Community Foundation that then pays a percentage of the assets' value to an endowment designated by the donor. At the end of the trust term, the remaining assets are then paid to the designated heirs. Charitable lead trusts offer several advantages including greatly discounted gift or estate taxes and any growth in the assets will be free of these taxes for the heirs.

For more information, please contact Joe Carter at 405/606-2914.