Charitable Remainder Annuity Trusts
A charitable remainder annuity Trust is a separately invested and managed charitable Trust that pays you, your spouse, and/or other beneficiaries a fixed annuity income for life or a term of years. You receive a charitable income tax deduction for a portion of your gift to the Trust. No additional gifts are permitted. After the annuity trust terminates, the accumulated principal or "remainder interest" goes to Freedom from Hunger.
- Receive stable, predictable income (particularly appealing to older donors and income beneficiaries).
- Avoid all upfront capital gains tax on any appreciated assets you transfer to the annuity Trust.
- Reduce your estate tax liability because the Trust is not included as an asset of your estate.
- You have the satisfaction of making a significant gift that benefits you now and and helps those most in need at the end of your lifetime.
Example
Comparison of Benefits: Unitrust and Annuity
Trust |
This
example is based on a factor that changes monthly. Contact our office
for a personal illustration based on the latest rates. |
Assumptions: |
> Beneficiaries
aged 72 and 70
> 28% income tax bracket
> Holding $100,000 in stock with $50,000 cost basis |
. |
Unitrust |
Annuity Trust |
Contribution |
$100,000 |
$100,000 |
Income Rate |
5% |
5% |
First Year's Income |
$5,000 |
$5,000 |
Future Income |
Variable |
$5,000/year |
Charitable Deduction* |
$43,764 |
$43,367 |
*Based on a Federal Discount
Rate of 5%. |
More
To learn more about charitable remainder annuity trusts, Email us, complete the Information Request Form, or call us at so that we can assist you.
Freedom from Hunger
Attention: Chris Dodson
1644 DaVinci Court
Davis, CA 95618
(530) 758-6200 ext. 1042
(800) 708-2555
Contact us now
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