Your Wallet - Fall 2007 - (Page 14)

financial advantage Charitable Remainder Trust (CRT) A Charitable Remainder Trust (CRT) could address many of your personal financial goals while providing the ability for you to make a significant gift to qualified organizations of your choice. Anyone who is subject to paying capital gain taxes on appreciated assets, whose estate is subject to estate taxes, would like to benefit charity, and has a need for income is a candidate to benefit greatly from a CRT. How does a CRT work? Income Saving Energy, Saving Money The Nuclear Energy Institute recently asked 1,000 Americans what their top choice would be for generating electricity in 15 years. The sun — not nuclear plants, coal or natural gas — was the clear winner among survey participants. The government also sees great value in solar energy. In the current fiscal year, the U.S. Energy Department plans to spend $159 million on solar research and development, nearly double that of nuclear energy research and development. So why are Americans nodding their heads to the sun? The reasons a typical family purchases a solar system vary, says Ray Ben-Gis, president of Solar Wise Inc. in Canoga Park, Calif. But there’s one common theme: It saves money. Ben-Gis says economics are the key deciding factor for many families. “With the ever increasing price of energy and the increasing cost of providing hot water to a home reaching up to 30 percent of a family’s total gas bill, solar heating makes incredible financial sense,” he says. One Southern California family can attest to the benefits of going solar. “We decided to ‘go solar’ this summer when our pool heater stopped working,” says Kristie Greenleaf, from Redondo Beach, Calif. “The first month’s heating bill dropped about $400. Our swimming season has been extended, our cost of heating has decreased and we’re keeping our commitment to green living.” Ben-Gis provides answers to a few basic solar system questions. You may also visit the Solar Wise website at www.solarwisenrg.com for more information. What is the average “energy payback time” on solar energy systems? A domestic hot water system will usually have a payback period of less than five years when compared to conventional gas water heaters. Pool heaters tend to have a payback time of less than four years when compared to LP gas, which is the most common heating fuel used in the United States. Donor Charitable Trust Charity Wealth Replacement Trust Heirs A CRT is an irrevocable, tax-exempt trust with two parts: 1) the income interest, and 2) the remainder interest. The income interest is the income paid to the individuals who established the trust (or their designated beneficiaries) for their lifetime or a term of years. The remainder interest is the money remaining in the CRT when the trust terminates. The remainder interest is given to qualified organizations (including family foundations and donor- advised funds) of the donor’s choice as specified in the trust document. Contact your Telesis Community Credit Union Investment Services representative today at (800) 895-8328 with questions or help with meeting your financial goals. This article is for educational purposes only. For specifics on financial, legal and other technical aspects of charitable remainder trusts, such as the one shown here, a qualified financial advisor, such as a Telesis Investment Services representative, an estate planning attorney or other advisors should be consulted. What maintenance is required when a solar product is installed? Both pool and domestic hot water solar systems are virtually maintenance free. Most issues with solar systems have to do with either an improper installation or abnormal weather conditions. Always use a certified solar contractor to design and install your solar system. What is the life of the system? Most solar collectors carry at least a 10-year warranty, but it isn’t uncommon for a solar system to work without any issues for 15 to 20 years or more. If you’re considering going solar or making other improvements to your home, consider a Telesis home equity loan. With great rates and attractive terms, going green is more attainable than you think. Stop by your local Telesis Community Credit Union branch or call us at (800) 895-8328. 14 FALL 07 http://www.solarwisenrg.com

Table of Contents Feed for the Digital Edition of Your Wallet - Fall 2007

Your Wallet - Fall 2007 Contents Shop Green What’s Your E-Footprint? Live a Greener Life! Motley Fool: Hybrid Cars Jean Chatzky: Reduce, Reuse and Simplify Get Tough on Fitness! Saving Energy, Saving Money My Community

Your Wallet - Fall 2007

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