Charitable Remainder Trust
Solutions for Large Donations
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.
Imagine the Following Scenario
At 75, you want to make a gift to CGU but would also like more income in the future. You create a charitable remainder unitrust with annual lifetime payments equal to 5% of the fair market value of the trust assets as revalued annually. You fund the trust with assets valued at $500,000.
You receive $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. You are eligible for a federal income tax charitable deduction of $301,905* in the year you create and fund the trust. This deduction saves you $96,610 in your 32% tax bracket.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your individual circumstances.
- Contact Claremont Graduate University at (909) 621-8027 or email@example.com to talk about supporting CGU by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include CGU in your plans, please use our legal name and federal tax ID.
Legal Name: Claremont Graduate University
Address: 165 E. 10th Street, Claremont, CA 91711
Federal Tax ID Number: 95-1664100
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Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
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Information contained herein was accurate at the time of posting. 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 any 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. California residents: 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. Oklahoma residents: 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. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.