Have you ever wanted to avoid taxes? Your answer: “Of course!” How about avoiding taxes while also receiving an additional charitable deduction on your taxes? Your response: “Is that even possible?” What if you could do both plus increase your income and give to your favorite charities? Your final answer: “Really? That would be amazing.”

But How? By creating your own “Amazing Charitable Trust” with American Bible Society.

The IRS has a technical term for this trust: Charitable Remainder Unitrust. It is regularly used by donors to benefit themselves, their loved ones and thousands of charities all over the United States.

Created by Congress in 1969, this valuable tool is a type of “planned” gift. Cash gifts are “now” gifts. A charitable trust is a planned or “later” gift.

Here is an example of how a Charitable Remainder Unitrust could work: Sam, age 65, and Sarah, age 62, own a farm (i.e., or rental property, stocks, bonds, CDs, etc.). The average cost basis for all their acres is about $100 an acre because they bought or inherited the farm decades ago. The farm’s current value is roughly $10,100 an acre.

If Sam and Sarah are in a 15 percent federal capital gains tax bracket combined with a five percent state tax bracket, they will pay the IRS about $2,000 for each acre they sell. For an average 160-acre farm, that’s a tax bill of roughly $320,000; one-fifth of the equity growth would go to the IRS in taxes. However, if they put that farm into the Amazing Charitable Trust, it can be sold 100 percent capital gains tax free!

Now, Sam and Sarah also have three children—two daughters and a son. All are young adults. No child is interested in farming. Mom and dad want the farm to help the kids and grandkids after mom and dad pass into heaven.

In their new Charitable Trust, Sam and Sarah name themselves with a lifetime of income. Plus they add 20 years of additional income for their three children. So they provide a stream of annual income for their kids for 20 years from their Charitable Trust. Just like the farm, (i.e., or rental property, stocks, bonds, CDs, etc.) the Charitable Trust “harvests” and pays out generous annual income for both mom, dad and the kids.

This type of “two-lives-plus-20-years” Charitable Trust will generate a 22-cent-on-the-dollar charitable income tax deduction. This deduction is available when the farm is deeded into Sam and Sarah’s Charitable Trust.

So, Sam and Sarah sell the farm after it is deeded into the Charitable Trust. By so doing, they avoid 100 percent of the capital gains taxes. Plus they generate an additional charitable deduction. Thus, they reverse their tax situation with the Amazing Charitable Trust.

Generally, charitable trusts are written to pay a five percent annual income. Sam and Sarah averaged a three percent net return after expenses from the farm. So they potentially increase their income by using their Amazing Charitable Trust.

Sam and Sarah give to American Bible Society. They also give to their local church. And they give to six or seven other charities. Their Amazing Charitable Trust can be designated to benefit all of their charities. Nothing goes to charity until after a lifetime of income goes to Sam and Sarah. And thereafter, when they are in heaven, nothing goes to charity until after 20 additional years of generous income payout from their Charitable Trust to their two daughters and son, who can use that income to bless their grandkids.

This Amazing Charitable Trust employs the B.I.C. principle: bypass capital gains taxes, increase income and generate charitable deduction and give to charity.

Now, even more amazing results occur when Sam and Sarah utilize an American Bible Society Kingdom Endowment. The endowment in their name is created on the 21^st heavenly birthday of the survivor of Sam and Sarah, when the 20 years of income to the kids ends.

Let’s say Sam goes to heaven first. He has benefitted from increased income from the Amazing Charitable Trust for his lifetime. Sarah continues to receive 100 percent of the trust payout for the rest of her lifetime. Then she goes to heaven. That’s when the 20 years of income for the kids begins.

On Sarah’s 21^st birthday in heaven, and after the 20 years of income benefits to their children have ended, the Sam and Sarah Kingdom Endowment springs to life—funded with whatever remains in their Amazing Charitable Trust. They named all their favorite charities and American Bible Society.

Sam and Sarah’s farm has helped continue their Christian stewardship—after they have benefited and after they have abundantly provided for their three children.

To learn more, connect with an American Bible Society Advisor by calling 800-549-3328 or visiting our “contact us” page.