Charities like Remede-Me, Inc. helps those who are less fortunate. And today, charities likes ours can also serve another purpose: we can help wealthy Americans reduce their tax bills.
A Brief History about Charitable Trusts:

In 1969, the United States Congress created a new type of trust that helps 501 (c) 3 charities generate more revenue for their causes.

These trusts allow wealthy taxpayers to:
1) Reduce their estate taxes
2) Eliminate capital gains
3) Claim an income tax deduction
4) Benefit the 501 (c) 3 charity instead of the IRS.

Kinds of Charitable Trusts:

A) Charitable Remainder Trusts (and)

B) Lead Charitable Trusts

Charitable Remainder Trusts:

With a Charitable Remainder Trust, the IRS allows the donor to receive a certain percentage of income annually from a donation which is given to a 501 (c) 3 organization like Remede-Me, Inc. Currently, the IRS requires that the donor of this type of Trust receive at least 5% of the value of the trust each year.

Lead Charitable Trusts:

The Lead Charitable Trust is different from the Charitable Remainder Trust. The major difference between these two types of Trust is that the 501 (c) 3 charity receives an annual payment from the donor's gift during the life of the donor. However after the donor's death, the charity must return the remainder of the donor's gift to his or her estate, or beneficiaries.

How It Works :

First, you or the receiving charity sets up a 501 (c) 3 Charitable Trust. Then (you) transfer to the Newly Created Charitable Trust the property to be donated to Remede-Me, Inc, the receiving charity. The property within the newly created trust may include: cash, stocks, bonds, real-estate, etc. that you want to donate to the receiving charity.

As a rule of thumb, the property to be donated should have been held by you, or the donor for at least one year prior to making the donation from the newly created charitable trust. And because the IRS rules change from time to time, we would also have to ensure that the certain items to be donated would be allowable at the time you wish to make the donation to our 501 (c) 3 charity.

With the transfer of the donated items from your 501 (c) 3 Charitable Trust to Remede-Me, Inc. our 501 (c) 3 non-profit charitable organization, we would then serve as a Trustee of the donated Trust. And Remede-Me, Inc. would manage or invest the donated property so that Remede-Me, Inc. could provide income to you, your spouse, or your other designated beneficiary as would be set forth in the legal language of the Trust.

What are the Benefits ?

Income Tax:

You can receive an income tax deduction spread over five (5) years for the value of your gift to our 501 (c) 3 charity. However there are certain IRS rules, and guidelines used in determining the amount of your deduction. Therefore you would want to consult with your tax advisor before taking a tax deduction to ensure that the deduction is allowed at that particular time by the IRS.

Capital Gains:

Another tax benefit in setting up a Charitable Trust is to reduce your Capital Gains Tax.

A Charitable Trusts lets you turn appreciated property (stocks, bonds, etc. which have been held for at least one year) into cash without paying taxes on the profits.

The way this is done is that Remede-Me, Inc. would sell any non-income-producing assets in the Charitable Trust. Remede-Me, Inc. would use the proceeds to purchase property that will produce

income for you. The advantages is that Charities do not have to pay Capital Gains Taxes. Therefore if you donate the property to the Trust and our 501 (c) 3 Charity sells the property, then the proceeds stay in the Trust and are not taxed.

Example:
Robert owns stocks worth $400,000. Several years ago, he paid $40,000 for the stock. Robert creates a Charitable Trust, naming Remede-Me, Inc. as the Charity Beneficiary, and funds the Trust with his stock.

Remede-Me, Inc. sells the stocks for $400,000 and invests the money in a mutual fund. Robert will receive income from this $400,000 for the rest of his life.

Had Robert sold the stock himself, he would have had to pay Capital Gains Taxes on the $360,000 profit. But no Capital Gains tax is assessed against the 501 (c) 3 charity - Remede-Me, Inc.

Estate Taxes - The Death Tax:

The federal government, and some state governments impose estate taxes at your death if your property is worth more than a certain amount. For the federal government, the current taxable amount is 1.5 million dollars for the year 2005. And under current federal law, this amount will be increased to 2 million dollars for the years 2006, 2007, and 2008. And it will go up to 3.5 million dollars for the year 2009.

For state governments, the taxable amounts vary, and you should consult with your tax advisor regarding state taxes.

However since our 501 (c) 3 charity (Remede-Me, Inc.) is regulated by the federal government, the estate tax is not assessed on any property you would leave to our tax-exempt charity.

But for individuals, the federal estate tax rates are high, starting at 39 % .

Consult Your Tax Advisor Before Creating A Charitable Trust:

Before creating a Charitable Trust, we recommend that you first consult with your tax advisor, or directly with the IRS. There are certain IRS restrictions which govern donations given to a 501 (c) 3 charities.

For example, once a Charitable Trust is created, and a donation is received by a 501 (c) 3 organization, the donation to the receiving 501 (c) 3 organization is irrevocable.

But there are also other IRS guidelines which may give you some flexibility. For example, you and your spouse may change the charitable beneficiaries at any time. (Unless the IRS rules should change).

Also you should take into account that account values, and income distributions will fluctuate. And the funds are not guaranteed or insured by any government body. Also the funds are not available in Puerto Rico.

Even with all of the IRS regulations and guidelines Charitable Trusts can be beneficial to you as well as to our 501 (c) 3 non-profit organization. Therefore we trust that you will consider creating a Charitable Trust in order to reduce your taxes, and at the same time help our non-profit organization