This is an educational illustration and does not represent legal or tax advice. The value and cost numbers have purposely been selected as round numbers to allow for personal interpretation. The value used is not a minimum, maximum or suggested amount. Please consult your legal and tax advisors about your specific situation.
Goal: Secure payments for life while reducing market risks
Benefit: Potential increased income and tax benefits
Susan and Fred know what hard work is all about. And they have the rewards as a result.
Susan: "I was one of the lucky ones. Times were hard, but I got my education. Did it make a difference? Only in every aspect of my life! I don't know where I'd be today without my degree."
Fred: "We know how important an education is, and we know how difficult it is for colleges and universities to develop the funding they need. Facilities, endowment, hiring the best professors, scholarships - it's all literally urgent."
Susan: "We benefited from our college experience - now we can give back. And what a joy it is to know that when we no longer need it, part of it is going to someone who does. It's awesome - we are changing lives!"
Fred: "That's why Susan and I made the decision. Not only will the trust provide income to us throughout our lifetimes, but we have peace of mind knowing that the remainder will benefit young people and the educational community as a whole."
There are two different types of charitable remainder trusts.
A charitable remainder unitrust (see example) is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of the assets in the trust. The assets are revalued annually and, if the trust value changes, the payment to the beneficiary(ies) changes.
A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.
Some additional information on charitable remainder trusts is also available. Charitable Remainder Trusts provide a good degree of flexibility that is valuable in charitable gift planning. For example, a variation on remainder trusts can be an effective way to make gifts of real estate. See the graphic example of a charitable remainder trust, above.
Susan and Fred are happy that they have made a difference; a difference that will have a profound impact on the lives of others.
Now click here to meet Phil and Alicia.
For more information or a confidential discussion of your charitable options, please email or call the Development Director, John McArdle, at (541) 917-4210 or Jim Birken, Planned Giving Manager, at (541) 917-4254.
We Look Forward to Hearing From You!