Discover a Gift That Is Truly Win-Win
Charitable Remainder Trusts
If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust.
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.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
An Example of How a Charitable Remainder Unitrust Works
Susan, 75, wants to make a gift to Brown but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 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 $303,230* in the year she creates and funds the trust. This deduction saves Susan $97,034 in her 32 percent tax bracket.
*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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- Contact The Office of Planned Giving at 401-863-9119 or Planned_Giving@brown.edu to talk about supporting Brown by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Brown in your plans, please use our legal name and federal tax ID.
Legal Name: Brown University
Address: Office of Planned Giving
Box 1893, Providence, RI 02912
Federal Tax ID Number: 05-0258809
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.