Charitable Remainder Trusts

Fred knows what hard work is all about. And he has the rewards as a result.

Fred: "I was one of the lucky ones. It was a very tough time for me and my family when I was growing up, but the scholarship was there when we needed a little help. Did it make a difference? I never would have gotten an education without it!

"I know how important help is when it is needed and I know how difficult it is for them to maintain their facilities, keep their equipment up-to-date, get volunteers trained and organized, and put aside resources for endowment and scholarships."

"I benefited because they had been supported by others before me - but now I can give back. And what a joy it is to know that when I'm no longer here, part of my resources is going to someone who needs it. It's awesome - I am helping to change lives!"

"That's why I made the decision. Not only will the trust provide income to me for the rest of my life, but I have peace of mind knowing that the remainder will benefit a University that's doing really good work."

There are two different types of charitable remainder trusts.

A charitable remainder unitrust (see example) is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of the assets in the trust. The assets are revalued annually and, if the trust value changes, the payment to the beneficiary(ies) changes.

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. A graphic example of a charitable remainder trust is available.

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. 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 McMurry University by Future Focus. Please report any problems to webmaster. Revised: May 23, 2006.