Charitable Remainder Trusts

Susan and Fred know what hard work is all about. And they have the rewards as a result.

Susan: "I was one of the lucky ones. Times were hard, but I got my education. Did it make a difference? Only in every aspect of my life! I don't know where I'd be today without my degree."

Fred: "We know how important an education is, and we know how difficult it is for colleges and universities to develop the funding they need. Facilities, endowment, hiring the best professors, scholarships - it's all literally urgent."

Susan: "We benefited from our college experience - now we can give back. And what a joy it is to know that when we no longer need it, part of it is going to someone who does. It's awesome - we are changing lives!"

There are two different types of charitable remainder trusts.

An irrevocable charitable remainder unitrust is a popular way to achieve tax benefits as well as receive a fixed annual percentage on the value of the assets in the trust. The assets are valued annually and, if the trust value increases, the payment to the beneficiary(ies) increases. An example of a unitrust is available.

A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.

Some additional information on charitable remainder trusts is also available. Charitable Remainder Trusts provide a good degree of flexibility that is valuable in charitable gift planning. For example, a variation on remainder trusts can be an effective way to make gifts of real estate.

Susan and Fred are happy that they have made a difference; a difference that will have a profound impact on the lives of others.

Now click here to meet Phil and Alicia.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for James Madison University by Future Focus.
Please report any problems to webmaster. Revised: August 11, 2005 15:08.