The T stands for
Trustor, the person who creates the trust. This is where it all begins. A generous, thoughtful, charitably minded individual or couple decides to use a trust to benefit themselves and others. People who include First Immanuel Lutheran Church in a trust do so because they believe in our mission and want to provide future support.
The R stands for Recipients, the beneficiaries of the trustor's generosity. For each trust, there are generally two groups of recipients: income recipient(s) and remainder recipient(s). The charity can be designated to receive either income or the remainder, depending on the nature of the trust. When a trust benefits a charitable organization like First Immanuel, there are tax benefits for the trustor.
The U stands for Understandings, the written documents that establish the trust. This collection of instructions and requirements abides by (and incorporates) a set of federal and state laws. Because it's important that the understandings are prepared properly, we always encourage trustors to seek independent counsel when establishing a trust. It's a good idea for trustors to meet with their attorneys and accountants to discuss the trust and its relationship to the overall financial picture.
The S stands for Substance, the assets placed into the trust. Notice we didn't say "money." That's because trustors can use various assets to fund a trust, including raw land, insurance, a house, and stocks and bonds. It's a good idea to use assets that have increased in value since you first acquired them, because you can avoid capital gains taxes. Another wise option is to use assets that have value, but produce little or no income for you. Through the trust, these assets can be sold and turned into assets that produce higher income.
The final letter T stands for Trustee, the person or organization that oversees the trust. The trustee is legally responsible for making sure that the understandings in the trust document are prudently honored under the umbrella of all applicable state and federal laws. When choosing a trustee, select a person or organization you can trust to fulfill your wishes far into the future.
To learn more about various charitable trusts and how they can benefit you and First Immanuel Lutheran Ministries, contact our director of development, Lori Newhouse at 262-377-6610. You can also contact her through our Web site at www.firstimmanuel.com.