Planned Giving Program – Charitable Remainder Unitrusts

Summary:
A charitable remainder unitrust provides a way for a donor to obtain an income stream for life.

How It Works:

  • The trust agreement provides an annual payment equal to a fixed percentage of the contributed amount, for life or a term of years, which payment is revalued annually and fluctuates based on the value of the trust’s assets.
  • If the trust assets grow, the increasing value will result in larger annual payments to the donor.
  • At the end of the term or the donor’s death, the trust terminates and any residual assets are conveyed to the society.

Benefits:

  • The donor receives a stream of income for life.
  • A portion of the initial contribution to the trust is tax-deductible.
  • If the donor makes the contribution in appreciated securities, taxes are typically avoided.
  • The contributed assets are removed from the donor’s estate and may reduce estate taxes.

Customization:

  • There are various provisions which can make up a charitable remainder trust.
  • Contact Society Treasurer Paul R. Judy directly or through counsel to establish a trust agreement meeting the objectives and needs of the donor and benefiting the Society.

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Banner photo by Elliot Mandel