Solutions for Large Donations
The Advantages of a Charitable Remainder Trust
If you have built a sizeable estate and are looking for ways to receive reliable payments, consider a charitable remainder trust.
Advantages of a charitable remainder trust include:
- Up-front capital gains tax avoidance
- Potential for a partial charitable income tax deduction
There are two ways to receive payments and each has its own benefits:
The annuity trust pays you a specific dollar amount each year, which you determine at the outset. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you a variable amount each year based on a fixed percentage of the fair market value of the trust assets. The payment is recalculated annually, so when the value of the trust increases, so does your payment; when the value decreases, your payment does as well.
Calculate Your Benefits
Submit a few details and see how a charitable remainder trust can benefit you.
An Example of How It Works
Susan, 60, wants to make a gift to Convent & Stuart Hall but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 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 $30,000 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 $276,880* in the year she creates and funds the trust. This deduction saves Susan $88,232 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.
- Contact Karen Lenardi at 415.345.5803 or firstname.lastname@example.org to talk about supporting Convent & Stuart Hall by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Convent & Stuart Hall in your plans, please use our legal name and federal tax ID.
Legal Name: Schools of the Sacred Heart San Francisco
Address: San Francisco, CA
Federal Tax ID Number: 94-1156671
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. 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.