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    Dilip0104's Avatar
    Dilip0104 Posts: 12, Reputation: 1
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    #1

    Aug 18, 2008, 01:19 PM
    Charitable Remainder Trust
    Hi,

    I am considering setting up a Charitable Remainder Trust through which I am told that I can get benefit of Income Tax Deduction and Estate Tax Benefit apart of satisfaction of donating my property to a good cause.

    Though I am clear with the Estate Tax Benefit, I am unable to figure out how the Income Tax Deduction is calculated. Can any one of you explain the calculation process involved in the same. Heard there is a Applicable Federal Rate(AFR) that will be used but not able to figure out how to calculate using the same.

    Many thanks for your help.

    Best Regards,
    Dilip.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Aug 20, 2008, 08:31 AM
    Here's a calculator that could help you. The amount of tax deduction depends on your age (and/or age of your spouse if she is included), how much income you wish to receive from the trust, and the type of trust you are setting up - for example a charitable remainder anniuty trust versus a charitable remainder unitrust.

    The National Academies
    Dilip0104's Avatar
    Dilip0104 Posts: 12, Reputation: 1
    New Member
    		  
    #3

    Aug 25, 2008, 03:57 PM
    Hi,

    Many thanks for the information. This seems to be very useful.

    Best Regards,
    Dilip.
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