Charitable Remainder Trust
Looking for a way to give TSU a significant gift? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust.
Benefits of a charitable remainder trust include:
- A partial charitable income tax deduction
- Student Academic Success Programs include special programming for freshmen as well as college-based support for students in their majors.
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
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.
Check Out This Potential Scenario
Susan, 60, wants to make a gift to TSU but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $250,000. Susan receives $15,000 the first year from the trust.
Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $81,305* in the year she creates and funds the trust. This deduction saves Susan $22,765 in her 28 percent tax bracket. *Based on annual payments and a 2.4 percent charitable midterm federal rate. Deductions vary based on income earned.
Learn How to Fund It
You can use the following assets to fund a charitable remainder trust:
- Appreciated Securities
- Closely Held Stock
- Retirement Plan Assets
- Tangible Personal Property
Calculate Your Benefits
Submit a few details and see how a charitable remainder trust can benefit you.