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Give & Receive

Testamentary charitable remainder trust

What is a testamentary charitable remainder trust?

A testamentary charitable remainder trust is funded at the time of the donor's death. It makes regular payments to the donor’s surviving spouse or other named income recipients for life, a term of up to 20 years, or both. The amount remaining in the termination of the trust will go to the donor's choice of funds held at Thrivent Charitable Impact & Investing™, benefitting charities or areas of charitable work recommended by the donor. Thrivent Charitable is available to act as trustee for testamentary charitable remainder trusts that will benefit charitable funds at Thrivent Charitable. In order for Thrivent Charitable to act as the trustee, a few requirements must be met. Please contact a gift planner to discuss these requirements or call our team at 800-365-4172.

Current minimums for charitable remainder trusts range from $50,000 to $200,000, depending upon the specific type of charitable remainder trust (CRAT or CRUT) and the gift asset(s) used to create it.

Charitable Strategies: Testamentary Charitable Remainder Trusts

Learn more about testamentary charitable remainder trusts

Watch the video and scroll down for additional information on testamentary charitable remainder trusts.
How to establish a testamentary trust
  1. Call Thrivent Charitable and speak with a gift planner at 800-365-4172. Thrivent Charitable will prepare a customized illustration for your client showing the income and tax benefits of creating this type of trust.
  2. If the donor wishes to proceed, he/she will need to complete and return the charitable remainder trust application and IRS Form W-9 for each income beneficiary. The donor will also need to create a charitable fund. We will then establish the fund and send a confirmation for donor’s review and signature. Along with the confirmation, we will send sample language for the donor’s attorney to insert into their will or living trust to create the CRUT upon their passing.
  3. If the asset used to establish the trust is from IRA or retirement plan assets, appropriate paperwork to make the beneficiary designation change must be completed by the donor.
Target Audience
  • Clients who are looking to reduce estate taxes.
  • Clients who want to stretch out taxable income to heirs.
  • Clients who want to provide an income to loved ones after death.
  • Clients who want to ensure a gift to charity after death.
Potential tax and financial benefits of a testamentary trust
  • The client may receive an estate tax charitable deduction.
  • Client’s loved ones receive regular payments for life, term or years, or both.
  • The client may avoid income and estate taxes imposed on retirement assets.
Benefits to you, the financial professional
Thrivent Charitable will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds.
More about testamentary trusts
  • The client may receive an estate tax charitable deduction.
  • Client’s loved ones receive regular payments for life, term or years, or both.
  • The client may avoid income and estate taxes imposed on retirement assets.

Additional information

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Our team of charitable gift planners utilizes deep charitable expertise to expand your clients' options and help meet their giving goals. Our collaborative approach will allow you to maintain your current client relationships while we provide the most relevant advice that aligns with your clients' financial priorities. 

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