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Testamentary Charitable Remainder Trusts

A donor may create a charitable remainder trust during life or at death via a will or revocable trust. A trust created by an individual's will or revocable trust sometimes is called a "testamentary charitable remainder trust." A donor's estate-benefits from an estate tax charitable deduction for the discounted present value of the trust's remainder interest, which will ultimately benefit Ohio Northern University.

Many donors have a strong charitable intent but are giving the wrong assets to the wrong parties. If you intend to make a charitable bequest, the gift should be made with assets such as retirement-plan assets since a tax-exempt charity, such as ONU, will not have to pay income taxes. Then give the income-tax-free assets, such as appreciated securities, to family, subject of course to possible estate and gift tax implications, which you will need to review with your CPA.