@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

Charitable TrustREMAINDER VS LEAD

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

WHAT DOES THE CHARITY RECEIVE?

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

REMAINDER TRUST REMAINDER

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

LEAD TRUSTDISTRIBUTIONS

COMPARISON REMAINDER TRUST

REMAINDERThe charity receives periodic

distributions from a charitable lead trust with the remainder going to another party. A charitable remainder trust is

the opposite. Periodic distributions go to a third party and the charity receives

whatever is left and the end.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

WHAT DOES THE CHARITY RECORD?

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/R

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/R

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS

In a lead trust the charity is not in control of the assets. It is entitled to the periodic distributions. The distributions are accounts receivable to the

charity. In a remainder trust the charity is in control of the assets. The trust assets are not

shown as a receivable. Rather, they are recorded as assets of the charity.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/R CREDIT REVENUE

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS CREDIT DUE TO

And REVENUE

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/RCREDIT REVENUE

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS CREDIT DUE TO

And REVENUE

Under a lead trust the charity credits revenue only. Under a remainder trust the charity has recorded

the trust assets on its balance sheet, and therefore have a liability for the amount due to the party that

will receive distributions. The charity recognizes revenue for the diff between the assets and the

liability.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

HOW DO WEVALUE THEREVENUE?

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/R CREDIT REVENUE

PV OF DISTRIBUTIONS

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS CREDIT DUE TO

And REVENUE

ASSETS – PV OF DISTRIB

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/RCREDIT REVENUE

PV OF DISTRIBUTIONS

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS CREDIT DUE TO

And REVENUE

ASSETS – PV OF DISTRIB

Under either trust, the distributions stream is discounted to present

value.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON LEAD TRUSTDISTRIBUTIONS

DEBIT A/R CREDIT REVENUE

PV OF DISTRIBUTIONS

REMAINDER TRUST REMAINDER

DEBIT TRUST ASSETS CREDIT DUE TO

And REVENUE

ASSETS – PV OF DISTRIB

REVENUE IS RESTRICTED

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

WHY WOULDA DONOR

DO A CHARITABLE TRUST?

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

BECAUSE:

1. They have a taxable estate, &2. They would donate anyway.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

WHY WOULDA DONORDO A CLT?

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

CURRENT TAX DEDUCTION

DISCOUNTED ESTATE TAX

DISCOUNTED GIFT TAX

BENEFITS

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

CURRENT TAX DEDUCTION

DISCOUNTED ESTATE TAX

DISCOUNTED GIFT TAX

BENEFITSThe donor gets a current income tax deduction

for the present value of the income stream attributable to the charity. Assets values are

locked at what they were on the date they were contributed to the trust. That’s good for gift tax

purposes if they pass to other beneficiaries while the donor is still alive. That’s good for estate tax

purposes if they pass after the donor dies.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

WHY WOULDA DONORDO A CRT?

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

CURRENT TAX DEDUCTION

AVOID CAPITAL GAINS TAX

GETS APPRECIATED ASSET OUT OF YOUR ESTATE

BENEFITS

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

CURRENT TAX DEDUCTION

AVOID CAPITAL GAINS TAX

GETS APPRECIATED ASSET OUT OF YOUR ESTATE

BENEFITSThe donor gets a current income tax deduction

for the value of the assets less the present value of the income stream. Appreciated assets can be

contributed to the trust and then sold at no capital gains tax. Donor is generally subject to tax on distributions. The assets are out of your estate – the charity gets them at the end of the

trust. It’s a good one to use if you hate your kids.

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

Alternatives to CRTCHARITABLE GIFT ANNUITIES AND POOLED INCOME FUNDS

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

DONOR BUYSANNUITY FROM

CHARITY

CHARITABLE GIFT ANNUITY

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON DONOR GETSTAX DEDUCTION

INCOME STREAM (ANNUITY)

CHARITY GETS ASSETS

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

NO TRUST,JUST A CONTRACT

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

DONOR INVESTSIN A MUTUAL

FUND

POOLED INCOME FUND

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

COMPARISON DONOR GETSTAX DEDUCTION

INCOME STREAM (MUTUAL FUND DISTRIBUTIONS)

CHARITY GETS ASSETS UPON DEATH OF

DONOR

@CFARRELLCPA. THIS PRESENTATION IS A GENERAL DISCUSSION OF THE SUBJECT MATTER AND IS NOT APPLICABLE TO ALL CIRCUMSTANCES.

EASY FOR THEDONOR