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Charitable Remainder Trusts
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Looking for a way to give Jackson College a significant gift? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust.
Benefits of a charitable remainder trust include:
- Potential for a partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
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.
Check Out This Potential Scenario
Susan, 60, wants to make a gift to Jackson College 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 $275,725* 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 2.4 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate Your Benefits
Submit a few details and see how a charitable remainder trust can benefit you.
- Contact Jennifer S. Brooket, CFRE at 517.990.1353 or firstname.lastname@example.org to talk about supporting Jackson College by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Jackson College Foundation in your plans, please use our legal name and Federal Tax ID.
Legal Name: Jackson College Foundation
Address: 3000 Blake Rd, Jackson, MI, 49203
Federal Tax ID Number: 38-2468643
Not Sure How to Begin Planning?Download our FREE Personal Estate Planning Kit
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 examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your 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.