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If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. At the end of the trust term, the balance in the trust goes to Assumption University.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Robie, 75, wants to make a gift to Assumption University but would also like more income in the future. Robie creates a charitable remainder unitrust with annual lifetime payments to him equal to 5% of the fair market value of the trust assets as revalued annually. He funds the trust with assets valued at $500,000.
Robie receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. He is eligible for a federal income tax charitable deduction of $301,905* in the year he creates and funds the trust. This deduction saves Robie $96,610 in his 32% tax bracket.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Submit a few details and see how a charitable remainder trust can benefit you.
Legal name: Assumption University
Address: 500 Salisbury St., Worcester, MA 01609
Federal tax ID number: Please contact us for our federal tax ID number.
See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.View My Guide