Wills, Trusts, and Annuities

Charitable Remainder Unitrusts

*Gift Example

You are considering a gift to of $250,000, but you are concerned about the capital gains consequences of liquidating assets, and reducing your and your spouse's cash flow.

You and your spouse, ages 70 and 68, own a small commercial building that has doubled in value and consequently generated several offers to purchase. You decide to place the building into a net-income unitrust that will pay 5% of the trust's value for your lifetime (initially from the rental income from the building, then a percentage of the proceeds of its sale) to the two of you. The remainder of the unitrust will go to .

What are your benefits?

Comparison

Unitrust

Private Sale

Amount transferred

$250,000

$250,000

Capital Gains Tax (@15%):

0

$18,750

Net for reinvestment

$250,000

$231,250

First year's income

$12,500

$11,562

Charitable deduction

$99,240

0

Tax savings @ 33% rate

$32,749

0

Total benefit, first year

$45,249*

$11,562

Unitrust payment plus tax savings from charitable deduction

*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.

Note: The Unitrust is not the only gift plan that pays you lifetime income. Compare its benefits with those of the annuity trust and the gift annuity.


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For more information

Email us, complete the personal illustration form, or contact the charitable estate planning representative in your area so that we can assist you through every step of the process.

Have Questions?

Contact your Charitable Estate Planning Representative to discuss your options.


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