Discover a Gift That Is Truly Win-Win
Charitable Remainder Trusts
Looking for a way to give the Foundation 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:
- 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, 75, wants to make a gift to the Foundation 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 $90,989 in her 33 percent tax bracket.
*Based on annual payments and a 2.4 percent charitable midterm federal rate. Deductions vary based on income earned.
- Contact Teresa Cirelli, Executive Director of the Eden II & Genesis Foundation, at firstname.lastname@example.org or 718-816-1422 x 1040 to talk about supporting the Foundation by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include the Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Foundation for the Advancement of Autistic Persons
Address: 15 Beach Street, Staten Island, NY 10304
Federal Tax ID Number: 06-1277426