Charitable Remainder Unitrust
You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need!
Benefits of a charitable remainder unitrust
- Receive income for life, for a term of up to 20 years or life plus a term of up to 20 years
- Avoid capital gains on the sale of your appreciated assets
- Receive an immediate charitable income tax deduction for the charitable portion of the trust
- Establish a future legacy gift to our organization
How a charitable remainder unitrust works
- You transfer cash or assets to fund a charitable remainder unitrust.
- In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
- The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years.
- You receive an income tax deduction in the year you transfer assets to the trust.
- Our organization benefits from what remains in the trust after all the trust payments have been made.
Contact us
If you have any questions about a charitable remainder unitrust, please contact us. We would be happy to assist you and answer any questions you might have.
Additional Information
Charitable remainder unitrust for income. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value.
How to select the right unitrust payout. There are several unitrust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.
CHARITABLE REMAINDER TRUSTS
OVERVIEW AND BENEFITS
If you own appreciated stock or real estate, you may be concerned about the high cost of capital gains tax upon the sale of your property. Or if you recently sold appreciated property and are looking for a way to offset your current tax liability with a charitable deduction. Perhaps you are entering or are in your retirement years, you may be evaluating options for increasing your income in the future. For all these reasons, you might consider one of two Charitable Remainder Trust (CRT) options.
What is a Charitable Remainder Trust?
A Charitable Remainder Trust (CRT) permits you to make a gift of your appreciated property and receive payment for a life, two lives or a term of years. By establishing a CRT, you can bypass capital gains tax. The trust will sell your property tax free and then reinvest in assets that produce increased income for you and your loved ones. Best of all, you will receive a current charitable deduction for your gift of the remaining value in the trust that will go to charity.
Flexible Payout with Tax Rewards
A Charitable Remainder Trust (CRT) pays either a fixed Annuity amount or a Trust amount that changes each year. You may like the security of the Annuity Trust with the certainty that you will receive the same annual payments. However, if you opt for the Unitrust, your income stream could increase over time with growth in the Trust. The Unitrust offers flexible payout options to meet your needs. One popular option permits the Unitrust to be invested to increase or decrease your income depending on your current needs.