Gifts to a charity or to a charirable remainder trust can reduce one's taxable estate by not only the value of the gift but also its potential appreciation.

If the donor retains the right to the income, as in a charitable remainder trust, the estate tax savings will not be as large. However, the donor ( or donors) may choose to make gifts of the income each year to children, grandchildren or to a trust on their behalf.

If certain requirements are met, these gifts will qualify for the annual gift tax exclusion of $10,000 from each donor to as many wualified beneficiaries as there are under the terms of the trust.

Click here for a chart that illustrates the potential savings, based on the following assumptions:

Current Estate Size:	$1,000,000
Estate Growth rate:	6%
Value of Charitable Gift:	$1,000,000

This document was last modified on July 26, 1999

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