Charitable Remainder Unitrust
© Connie Gelb
|
By establishing a charitable remainder unitrust, you (and/or others you designate) receive income for life or a term of years while ultimately helping to
provide material and financial assistance to retirees and caregivers future generations. You can fund a charitable remainder unitrust with cash or appreciated securities. It is also the preferred vehicle for donating real estate. Trusts provide significant tax benefits along with lifetime or term income.
The trust's annual payments are based on a fixed percentage of the trust's value. Each year the trust's assets are revalued and your income payment will change and may grow over time. Unitrusts can provide an excellent hedge against inflation if the trust principal increases. Another option is a charitable remainder annuity trust if you prefer fixed income.
Benefits / Gift Requirements
-
Lifetime or Term Income - Receive payments either for your lifetime or for a fixed term of years - you decide.
-
Immediate Tax Savings - By creating a charitable remainder unitrust, you can take an income tax charitable deduction in the year you make the gift. If you fund your trust with appreciated property, you can avoid or defer capital gain taxes you would have paid had you sold the asset.
-
Leave a Legacy - Your gift will ensure
retirees and caregivers will be helped across future generations. Become a Legacy Club member.
-
Minimum Age - 50
-
Minimum Gift Amount - $50,000 for trusts funded with cash or securities; $100,000 for trusts funded with real estate
Making Your Property Work for You - A charitable remainder unitrust is the preferred vehicle for donating real estate.
Smart Retirement Strategy - You can use a charitable remainder unitrust to build retirement assets.
How It Works (example)
Charitable Remainder Unitrust Funded with Securities - Robert, 55, and Virginia, 50, are life-long
humanitarians. So when they updated their estate plan, they decided to create a charitable remainder unitrust both to reduce their taxes and support our
charitable work. Robert and Virginia own securities that originally cost them $50,000 and that are now worth $100,000. They donate these securities to a charitable remainder unitrust and name us as trustee. Robert and Virginia choose to receive annual payments of 5% of the value of the trust (paid quarterly). The first year, Robert and Virginia will receive $2,500. However, the trust assets are revalued annually and the payments will change and may grow over time. They receive an immediate income tax deduction of approximately $20,700, and they avoid paying the capital gain tax on the appreciated securities when the trust is created. After their lifetimes, we will use the trust principal for top
retirement and caregiver humanitarian priorities.
Charitable Remainder Unitrust Rates - Find out the current rates for one and two beneficiary charitable remainder unitrusts.
Planned Giving Calculator
Calculate your own potential benefits from a charitable remainder unitrust.
Supporting Conservation In Their Own Backyard - Read about the Carpenters who donated their home to establish a charitable remainder unitrust.
Contact Us
Would you like more information on charitable remainder
unitrusts, other gifts that provide income or becoming a Legacy Club member? Please contact us, e-mail
legacy@retirement-resource.org
or call us toll-free at (877) 855-3718.
If you would like a personalized proposal for a charitable remainder unitrust, please let us know the date(s) of birth of the income beneficiary(ies) and the gift amount you are considering.
Gift Planning Home | Life-Income Gifts Home | Comparison of Giving Options | Contact Us
Information provided on our Internet site is not intended to be tax or legal advice.
Rates used in examples are for illustrative purposes only. Please consult a qualified legal or financial advisor before making a gift.
| The Retirement Resource Organization, Inc. is a tax-exempt charitable organization under Section 501(c)(3) of the Internal Revenue Code.
Donations are tax-deductible. | |
|
