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Charitable Remainder Trusts

A charitable remainder trust saves income and estate taxes while providing an important gift to the Law School. With a charitable remainder trust, you or your designates receive a distribution at least annually for life or a term of years, and the remainder interest then passes to the Law School.

A charitable remainder trust provides an immediate charitable income tax deduction. Also, gifts to a charitable remainder trust avoid capital gains taxes on the sale of appreciated assets. Establishing a charitable remainder trust can be especially advantageous if you have assets, such as appreciated stocks, that have been generating little or no income.

There are two types of charitable remainder trusts. Each can be established for one or more lifetimes or for a specified term.

  • A charitable remainder unitrust provides for a distribution of a sum certain (commonly 5 to 6 percent) that will fluctuate annually based on a yearly determination of the fair market value of the trust assets.
  • A charitable remainder annuity trust calls for a specified distribution from the trust of at least 5 percent of the initial fair market value of the assets in the trust.