Charitable Trusts explained

• Tweet

The following article outlines how to set up a charitable trust, plus it provides a real life example of how one works.

Wednesday, June 14th 2000, 9:24PM

Distinctive features of a Charitable Trust

• If approved by the Inland Revenue Department, they are able to earn income, which will not be taxed within the Trust.
• Gifts can be made of any amount to Charitable Trusts without incurring gift duty.
• Charitable Trusts can continue on in perpetuity if desired as compared to other types of Trusts that can only continue for a maximum of 80 years.
• They can be set up during one's lifetime and then added to later by a Will.
• Money can be given or lent to a Charitable Trust.
• The chosen name for the Trust can be preserved in perpetuity and the Trust structured so it will continue to grow through investment or by compounding part of the income.
• By lending capital to the Trust it is possible to preserve ones options. The loan can always be repaid later if the capital is needed for another purpose.

Winton and Margaret Bear were devoted to helping young people; especially those from deprived backgrounds. Unable to have children themselves, the couple became deeply involved in helping children's homes after Mr Bear returned from wartime service as an army captain in 1947. They soon developed clear targets and ideas about the people who needed their help.

Their desire to help "the younger generation" led them to finding ways to put their money to good work. With the good advice they received from TOWER Trust and their own good judgment, the Bears decided to set up a private Charitable Trust with TOWER Trust. Every cent, every asset - even their family home - went into the Winton and Margaret Bear Charitable Trust.

The guidelines for the Trust were clear - to help young people. While Margaret and Winton continued living their simple life - unassuming and frugal, and never flaunting their wealth - grants from their Trust went into hundreds of causes ranging from education to job training schemes to youth outdoor pursuit centres and health, upholding the Bears' dream of helping young people to achieve. "The young", they used to say, "are our future".

The couple - virtually inseparable in life - died within months of each other in 1998, both aged 85. Since their deaths, their legacy and the philosophy of the Trust has been continued by TOWER Trust. The Trust created by Winton and Margaret Bear is a wonderful gift to young people, and it is TOWER Trust's duty as sole Trustee to ensure their legacy and vision are carried on through future generations.

Commenting is closed

www.GoodReturns.co.nz

© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved