CHARITABLE REMAINDER TRUSTS

In a charitable remainder trust, the donor places assets, cash or securities, into a trust and receives payments from this trust for his or her lifetime.  Upon his or her death, the remaining assets are paid to the school.

The trust can either be in the form of a unitrust, which pays a fixed percentage of the fair market value of these assets, or an annuity trust, which pays a fixed dollar amount for the life of the trust.

The donor may set up this trust to make payments during his or her lifetime, or may leave this as a provision in his or her Will, making lifetime payments instead to a beneficiary, such as a spouse.

Benefits of a Charitable Remainder Trust

• Leaves a legacy for the school, aiding it in continuing its mission.
• Provides competitive and consistent payments for the giver.
• May provide income and estate tax savings. *
• If the trust is funded with highly appreciated stock that has been held for more than a year, capital gains taxes are eliminated.

* According to recent tax laws, the estate tax will be phased out gradually until 2009, be totally eliminated in 2010, and then return its 2001 levels in 2011, under a "sunset provision."  Thus, currently the estate of a Will executed after 2010 might be subject to taxes, which could be reduced by charitable remainder trusts.

For more information on planned gifts, please click this link and submit form. 

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