Charitable Trust Termination

Complete terminations of charitable remainder trusts are appealing for two primary reasons. The donors no longer want or need the income, and/or they want to give to charity in the present or near term.

At some point during the trust term, the donor(s) may decide that they no longer need the trust payments. The donor may at that point transfer to charity their right to receive future trust payments. Depending on state law, the controlling language of the trust document, and the trustmaker's charitable inclinations, one possible solution is to create a Donor Advised Fund with American Endowment Foundation. The donor(s) can use this Fund to recommend grants immediately, and the family can stay involved in these meaningful assets for future grantmaking.

Sample Language

The attachment below contains sample language that the donor can send to the trustee of the charitable remainder trust to transfer his or her interest in the future payments to charity. It is advisable to have the donor consult with their own professional advisor.

 

Sample Letter for Charitable Trust Termination

Co-Founder

Tom Tobin
President/CEO
tomtobin@aefonline.org

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