Provide income for life while supporting causes you care about with tax benefits
Charitable Trusts offer a strategic way to provide income for yourself or your beneficiaries while creating a lasting charitable legacy. WaterStone offers two types of Charitable Trusts: Charitable Remainder Trust (CRT) and Charitable Pooled Trust (CPT). Both trusts provide income during your lifetime or a set term and distribute the remaining assets to the charities of your choice, offering tax advantages and ensuring a lasting impact on the causes you care about.
A Charitable Remainder Trust allows you to donate assets like real estate, marketable securities, or business interests. You or your beneficiaries receive income from the trust for life or a set number of years. After the trust term, the remaining assets are granted to the charitable organizations you’ve selected. CRTs provide immediate tax benefits and reduce estate and capital gains taxes.
In a Charitable Pooled Trust, your assets are combined with those of other donors in a pooled investment fund. You receive income from the pooled trust for life, and after your lifetime, the remaining assets are distributed to your chosen charities. CPTs offer the benefits of pooling resources while ensuring you support the causes you care about.
Charitable Remainder Trust
GIVE: Donate assets like real estate, business interests, or appreciated securities, securing a charitable tax deduction and lifetime income.
GROW: Assets are invested, generating a lifetime income stream for you or your beneficiaries. While the trust grows over time, distributions provide taxable income, enabling you to support your lifestyle now while maximizing the future impact on the charities you care about.
GRANT: At the end of the trust term, the remaining assets are distributed to your chosen charities, leaving a lasting charitable legacy.
Charitable Pooled Trust
GIVE: Contribute cash or marketable securities to a pooled trust, receiving income from the trust while pooling your resources with other donors.
GROW: The pooled assets in the CPT are invested, providing you with a steady income stream while contributing to the future benefit of your chosen causes. Although income distributions are taxable, the investment strategy ensures the long-term growth of the trust, amplifying its charitable impact.
GRANT: After your lifetime, the remaining assets in the pooled trust are granted to the charitable organizations you’ve recommended.
Charitable Remainder Trust
Tax Efficiency: Receive an immediate charitable deduction, while reducing capital gains and estate taxes.
Income for Life or Term: Choose between an Annuity Trust (CRAT) with a fixed dollar amount or a Unitrust (CRUT) with a percentage of assets valued annually. Both options provide a reliable income stream.
Personal Control: Maintain individual control over the assets and charitable designations, allowing for a highly personalized giving strategy.
Long-Term Impact: The assets in your CRT grow over time, allowing for a larger final gift to the charities you select.
Estate Planning Flexibility: Assets placed in a CRT are excluded from your estate, helping to minimize estate taxes. This structure not only supports charitable goals but also ensures a significant final gift to the causes you care about.
Charitable Pooled Trust
Tax Efficiency: Receive an immediate charitable deduction, while reducing capital gains and estate taxes.
Income from Pooled Assets: Enjoy lifetime income derived from the pooled resources of multiple donors.
Collective Giving: By pooling resources with other donors, your contribution benefits from the strength of collective investment strategies.
Flexibility for Smaller Contributions: CPTs allow donors to contribute even if their gift alone may not justify a standalone trust, making it accessible for more donors.
Simple Process: WaterStone manages the pooled trust, ensuring the administration is handled efficiently while you receive income and your chosen charities benefit.
Reduces the Donor’s Estate: Effectively reduces estate size, supporting both financial and charitable objectives.
Get personalized charitable solutions based on your needs.
WaterStone handles all administrative aspects of Charitable Trusts, ensuring a seamless experience for both donors and beneficiaries.
WaterStone serves as the Trustee and handles all administrative responsibilities, so you can focus on your philanthropic goals.
Clients have the option to work with their own Investment Advisor to manage the trust funds, providing control over investment strategies.
WaterStone ensures income beneficiaries receive regular payments based on the terms of the trust, offering a steady income stream.
We prepare and distribute detailed trust statements, keeping all parties informed of the trust’s performance and distributions.
Each beneficiary receives a K-1 form prepared by WaterStone, simplifying the tax reporting process.
WaterStone takes care of all annual tax filings for the trust, ensuring compliance and relieving you of administrative burdens.
Pricing Schedule
(assessed quarterly on daily asset balances)
Asset Amount
Base
$0-$250,000
$250,001 to $1,000,000
$1,000,001 to $5,000,000
Greater than $5,000,000
$1,200
0.76%
0.52%
0.16%
0.060%
(assessed quarterly on daily asset balances)
Asset Amount
Base
$0-$250,000
$250,001 to $1,000,000
$1,000,001 to $5,000,000
Greater than $5,000,000
$1500
0.95%
0.65%
0.20%
0.075%
- Real Estate, Privately Held Business Interests, Oil & Gas, etc.
- Excludes publicly traded securities & life insurance
- One-time contribution based on the appraised value
- Contribution in addition to the annual administration
- Collected at liquidation of the asset
Asset Amount
First $1M
Next $4M
Next $5M
Above $10M
1.00%
0.75%
0.50%
0.25%
Asset Amount
First $1M
Next $4M
Next $5M
Above $10M
1.00%
0.75%
0.50%
0.25%
Are You a Financial Advisor?
At WaterStone, we know your expertise is the key to unlocking your clients’ charitable potential. Our process makes it simple for you to lead the way. While we handle the complexities—from strategy to implementation—you stay in control of their investments. Together, we help your clients achieve their financial and charitable dreams, making you the trusted guide they rely on.
Resources
Increase your income while avoiding capital gains taxes and securing a charitable tax deduction today. Once all income payments are made for your lifetime, the remaining principal is seamlessly distributed to your chosen charities.
Increase your income while bypassing capital gains taxes and receiving an immediate charitable tax deduction. After all of the income payments have been completed, the remainder is distributed to your preferred charities.
Tailored Strategies to Maximize the Impact of Charitable Contributions
A flexible, tax-efficient way to give now and support
your favorite charities over time
A way for churches and nonprofits to efficiently manage charitable contributions and support their mission.
