CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Craig Lundquist, MBA, ChFC®, CRPC®
VP of Wealth Management
651-773-2757
Kristin Becker
Senior Administrative Assistant
651-773-2821
Ideal Wealth Advisors
Located at Ideal Credit Union
8499 Tamarack Road
Woodbury, MN 55125
CRPC conferred by College for Financial Planning
May/June 2024
Split Interest Trusts: The Basics
Split interest trusts are created to provide for both charitable and non-charitable beneficiaries. Donors can support an organization or a cause while still arranging for themselves or their loved ones to benefit from the assets placed in the trust.
How It Works
The trust is called a split interest trust because the assets ultimately benefit both a charitable organization and a named beneficiary. The donor transfers assets into the trust and receives a charitable contribution tax deduction in the same year. Transferred assets can include cash, securities, or real estate. Once assets are placed in the trust, the donor no longer has control of them. A trustee manages the assets according to the agreement that established the trust. The IRS generally recognizes three types of split interest trusts.Charitable Remainder Trust
The most common form is a charitable remainder trust (CRT). The donor contributes assets to the trust, which then pays income to the donor or other beneficiary(ies) for a specified time — often, the donor’s lifetime. Any assets remaining in the trust after the specified period are distributed to one or more charitable organizations.Charitable Lead Trust
A charitable lead trust (CLT) is designed to support charitable causes while still benefiting the donor’s heirs. The donor contributes assets to the trust, which then pays income to the chosen charity(ies) for a specified time. At the end of that time, the remaining assets are distributed to the donor’s heirs or other beneficiaries.Pooled Income Fund
A pooled income fund (PIF) is established and maintained by the qualified nonprofit organization that benefits from it. The fund receives irrevocable contributions from one or more donors, which may be individuals, families or a corporation. The funds are invested and donors receive distributions from the fund’s income, making them beneficiaries of the trust. When donors die, their share of the fund is distributed to the charity as a donation.Is It for You?
Keep in mind that you no longer have control of assets placed in a trust. Your financial professional can discuss the pros and cons.542810-6
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
The sender and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.