Planned giving for good

Donor uses charitable remainder trust to do 'something worthwhile' for community.

BY VIVIAN LOPEZ

Margaret Chou was looking for a way to generate income for her and her husband, Philip’s, retirement living expenses while also making an impact for those in need in her community. She set up a Charitable Remainder Trust with The Salvation Army in 2021 to do just that and chose the option to provide income for her five grandchildren for an additional 20 years after her lifetime.

“Margaret is unique in that she has known about the many advantages of Charitable Remainder Trusts for a while. She knew that eventually she would want to gift her property, and the Charitable Remainder Trust is a great tool in reaching her goals of helping her family and her community,” said Scott Claeys, Northwest Division Senior Director of Gift Planning. “This way she no longer needs to maintain the property, still has extra income for her family and will leave an incredible gift.”

Charitable Remainder Trusts are funded through a variety of assets including appreciated property. This process allows donors to bypass capital gains tax on the sale of the property and enjoy a charitable tax deduction. Assets in the trust grow tax-free and donors’ beneficiaries are paid out during their lifetime. The remaining funds go to The Salvation Army to help fund programs and services the donor cares about.

“Typically, it creates income for the beneficiaries… for their lifetimes or a period of years, and then the remainder comes to The Salvation Army to fund the ministry,” said Jeffery Hesseltine, Western Territorial Director of Gift Planning.

For the Chous, the trust is funded through appreciated assets from a rental property, granting them the supplemental retirement funds they need while still supporting their five grandchildren financially in the years to come. Following the payouts, the remainder of the trust will support the work of The Salvation Army in the Chous’ neighborhood of Bellevue/ Eastside, Washington.

I thought the Charitable Remainder Trust would be a good idea because after we pass on, then The Salvation Army can use the funds to give to my five grandchildren.

“I thought the Charitable Remainder Trust would be a good idea because after we pass on, then The Salvation Army can use the funds to give to my five grandchildren. The money won’t be too much, but at least during their years it can help them out,” Chou said. “After 20 years, The Salvation Army can use the [remainder] funds…to do a lot more good deeds.”

Chou witnessed these deeds firsthand when she volunteered at The Salvation Army. She saw the impact of programs, including those for meals and youth.

“When I donated, it was fairly easy because I knew the good work they are doing,” Chou said. “They knew what to do. I told them what I had intended.

Conference delegates give up life's hurry and step into