A charitable remainder unitrust is a great way to secure a lifetime income for you – or others you choose – while you support Trinity College. Your charitable remainder unitrust will pay you a fixed percentage each year. As the value of the trust grows, so will your annual payments. You will be entitled to an immediate income tax charitable deduction for the charitable value of your gift.
You create your charitable remainder trust by giving money or property to a trustee with instructions to invest the funds, pay a percentage to you or someone else each year for life, and then give the remainder of the trust fund to Trinity. You select the percentage to be paid and name the income beneficiaries when you create your trust. These choices are irrevocable and cannot be changed once your trust has been established.
The amount of the income tax charitable deduction for your contribution is the estimated present value of the future amount to be received by Trinity. The deduction amount takes into consideration the ages of the income beneficiaries and the percentage to be paid to them. In general, the deduction is larger if your beneficiaries are older.
You will not pay capital gains tax when you give appreciated property to your charitable remainder unitrust. However part of the income paid to the income beneficiaries may be taxed as capital gain income – a distinct advantage because capital gains tax rates are lower than the tax rates for ordinary income.
We would be pleased to answer your questions or send you a personalized, no-obligation illustration. Visit legacy.trincoll.edu/crut or contact Linda Minoff, Director of Gift Planning.
