A Charitable Remainder Unitrust and Charitable Remainder Annuity Trust share many common advantages with two important distinctions. A Charitable Remainder Unitrust pays the beneficiary a fixed percentage of the principal of the trust as it is revalued annually. This type of trust provides the donor with the flexibility to make additional gifts to the trust. In contrast, a Charitable Remainder Annuity Trust pays the beneficiary a fixed dollar amount, which is determined when the trust is established. Additional gifts to this type of trust are not permitted. Depending on your needs, you may find one trust arrangement more attractive than the other.

Are your appreciated assets (such as stock, bonds or real estate) producing little or no income?
If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution.

How a Sale and Unitrust Works.

• You give a portion of your asset.
• The asset is sold, you receive cash and the rest goes to fund your charitable trust.
• The trust will provide you with income for the rest of your life.
• You receive a charitable deduction this year to offset your tax on the sale.

Benefits of a Sale and Unitrust

• You get the cash you need to purchase another residence, travel or meet your daily needs.
• The Unitrust provides you with income for the rest of your life and future retirement.
• The Unitrust deduction gives you valuable tax savings that may reduce your tax bill this year.
• When you pass away, the remaining value in the Unitrust will help us further our work.

If you are 60 or older, a Deferred Gift Annuity (DGA) can provide you with income and/or capital gains tax advantages and high, fixed income when you reach 65. The same investment will benefit the charities in which you most believe. The Deferred Gift Annuity (DGA) If you are younger than 65 this annuity can be used as a retirement planning vehicle to supplement existing retirement assets. It is most beneficial to donors who have already made the maximum contributions to their existing retirement plans.

You will be paid a fixed amount of income on a regular basis, beginning at age 65. Part of the gift qualifies for an immediate income tax deduction. That will reduce your current taxes. And the full value of the gift is removed from your estate. The younger you are, the larger the tax-deductible portion of the gift. What’s more, part of the annuity payment may be received as tax-free income.

Many donors create Deferred Gift Annuities on an annual basis to build retirement assets. The donor may name a joint and successor beneficiary who will receive the annuity at the end of the donor’s lifetime, beginning on the date of the donor’s 65th birthday or thereafter.