How does Charitable Trust Services Work?

 

Our Charitable Trust Services simplify Charitable Remainder Trusts to make them more accessible, straightforward and easy-to-manage.

As trustee, we take on the record-keeping, tax-reporting, and fiduciary oversight of the trust, so you don’t have to. Our Charitable Trust Services are one of the only programs which allow your independent investment advisor to manage the donated assets without also taking on the complex responsibilities of trusteeship.

To take advantage of Charitable Trust Services:

1. Establish
Schwab Charitable will work with you and your attorney to establish the trust, name Schwab Charitable as the trustee, identify the income beneficiaries, and recommend an independent investment advisor to manage the assets.
2. Fund
You make an irrevocable donation of $250,000 or more in cash or publicly-traded securities to the trust. Schwab Charitable can also accept donations of closely-held stock, some real estate, and other “non-cash” assets.1
3. Invest
The independent investment advisor approved by the trustee then invests the assets of the trust in suitable investments to generate income for you and preserve the principal for charity.2
4. Receive income
Schwab Charitable will distribute income to the income beneficiaries of the trust, according to the terms of the trust document.
5. Create a flexible charitable legacy
At the trust’s termination, Schwab Charitable will distribute the remainder to your Charitable Gift Account with Schwab Charitable Fund™. This gives you considerable flexibility:
  • -The Charitable Gift Account can be distributed immediately to charitable beneficiaries, which you can change at any time before the trust’s termination.3
  • -You can name successor-advisors, such as your family, to the account so they can recommend grants over time to support the charitable causes they value.
  • -Or, distribute some to charitable beneficiaries you’ve designated and name successor-advisors to advise the rest of the account over time.

1. “Non-cash” assets are accepted on a case-by-case basis. Contact Schwab Charitable for more information.

2. Charitable Trust Services requires that investment advisors work with Schwab Institutional®, a division of Charles Schwab & Co., Inc. While a donor/trustor may recommend an advisor, as trustee, Schwab Charitable must approve the recommendation. Advisors must meet certain eligibility requirements and adhere to Schwab Charitable’s fee and investment guidelines. You may request a copy of the investment guidelines by calling us at (800) 746-6216.

3. All recommendations of charitable beneficiaries are subject to approval of the Fund, in its sole discretion, at the time the grant would otherwise take effect.

  

Call a Donor Relations Specialist:
(800) 746-6216
Monday to Friday, 11am - 8pm ET

You may also contact us via email to ask questions or to request printed materials.