Charitable Pooled Trust

A Charitable Pooled Trust is an incredible tool for those looking to make an irrevocable gift that provides both a lifetime income from premium investment options and an unprecedented charitable tax deduction. No income generating charitable opportunity comes close to the tax deduction offered by WaterStone’s Charitable Pooled Trust.

Description of Services

Similar to a mutual fund, the Charitable Pooled Trust enables you to make a gift of cash or securities to a WaterStone pooled account and receive variable income for life from premium investment options with remainder interest to charity. At your death, the remainder will be available for the mission of your recommended charities through your WaterStone Giving Fund. At the time of your gift, take advantage of an unprecedented charitable tax deduction.

A Charitable Pooled Trust from WaterStone offers the following advantages:

Significant Tax Benefit

An immediate, historically high charitable tax deduction at a percentage approximating the age of the youngest income beneficiary (e.g., a couple aged 65 and 60 would receive a tax deduction of approximately 60%, or $6,000 for every $10,000 contributed).

Lifetime Income

Up to two income beneficiaries. A range of income producing opportunities through diversified, professionally managed pools generating lifetime variable income.

Flexible Charitable Legacy

Your WaterStone Giving Fund will receive the charitable remainder attributable to you, allowing you to distribute to your favorite charities as you wish: immediately or over time.

Simplicity

Simple to establish – no attorney required – and a low initial contribution minimum of $50,000.

Example:

A 70-year old single individual with $100,000 in zero-basis, low yield securities could sell and reinvest in a higher yielding investment. Assuming he receives 7% annually during his 16-year life expectancy, he would receive $95,200 in lifetime income.

If instead he contributed the securities to a WaterStone Charitable Pooled Trust generating the same 7% annually during his life expectancy, he would receive an additional $59,200 as follows:

  • $16,800 in additional lifetime income
  • $15,000 in capital gains taxes avoided
  • $27,400 in federal income tax savings (assuming a 35% tax bracket)

Complete the form below to download a CPT white paper.

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