Charitable Remainder Trust
Solutions for Large Donations
If you have built up a sizeable estate and are looking for ways to make a significant charitable gift, while also receiving payments, you may want to consider a charitable remainder trust.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
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.
An Example of How It Works
Anne, 75, is interested in making a significant gift that will have an impact on generations of Juilliard students. She also wants to take advantage of an income stream during her lifetime. She decides to create 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.
Anne 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 $276,880* in the year she creates and funds the trust. This deduction saves Anne $88,232 in her 32 percent tax bracket.
*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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- Contact Lori Padua at 212-799-5000, ext. 7152 or email@example.com to talk about supporting Juilliard by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Juilliard in your plans, please use our legal name and federal tax ID.
Legal Name: The Juilliard School
Address: New York, NY
Federal Tax ID Number: 13-1624067