Charitable Remainder Trusts
There are two types of charitable remainder trusts. A unitrust provides a cash flow that may increase over time and enables you to contribute appreciated assets to the trust, receive fixed payments, defer or eliminate capital gains tax. An annuity trust provides a steady cash flow and enables you to contribute appreciated assets to the trust, receive fixed payments, defer or eliminate capital gains tax.
How it works
- You transfer cash, securities or other appreciated property into the charitable remainder trust.
- If you choose a unitrust, it pays a fixed percentage of the value of its principal, which is re-valued annually, to you or to beneficiaries you name for your lifetime or their lifetimes or a term of years.
- If you choose an annuity trust, it makes fixed annual payments to you or to beneficiaries you name.
- When your trust terminates, the remainder passes to Jefferson and is used in the manner you specified in the trust agreement.
- You receive an immediate income tax deduction for a portion of your contribution to the trust.
- You pay no upfront capital gains tax on appreciated assets you donate.
- You or your designated beneficiaries receive income for life or a term of years.
- If you choose a unitrust, you may be able to make additional gifts to the trust as your circumstances allow and qualify for additional tax deductions.
- You have the satisfaction of making a significant gift that benefits you or your designated beneficiaries now and Jefferson in the future.