A web-based tool facilitates the complex calculations necessary for establishing and managing a specific type of charitable giving arrangement. This arrangement involves an irrevocable transfer of assets to a trust, which then pays a fixed percentage of its value annually to designated beneficiaries for a specific term. Upon the term’s conclusion, the remaining assets are distributed to the chosen charities. For example, a donor might transfer $100,000 to fund such an arrangement, with a 5% annual payout to a beneficiary. This tool allows users to model various scenarios by adjusting inputs like the initial contribution, payout rate, and term length.
Such tools are invaluable for financial planning, offering potential tax benefits and a predictable income stream for beneficiaries while ultimately supporting philanthropic goals. Historically, these arrangements were primarily accessible to high-net-worth individuals due to the intricate calculations involved. However, online resources have democratized access to this sophisticated planning technique, enabling a broader range of donors to explore its potential advantages.
