If you want to support the work of Maryville while receiving a steady stream of income, you may want to consider funding a Charitable Remainder Trust (CRT) at Maryville.
With a CRT, you transfer money or property into a trust. The trust makes payments to you (or to you and your designated beneficiaries) for your life or for a period of years (not to exceed 20 years) as you designate in the trust agreement. When these payments terminate, the assets in the trust pass to Maryville to be used as directed by you.
The two most common types of CRT’s are:
Annuity Trust: Fixed Income Charitable Remainder Trust
You receive payments that equal a specified amount of money or a percentage of the value of the principal of the trust when the trust is established. The amounts of these payments do not change as long as the trust continues in existence.
Unitrust: Flexible Income Charitable Remainder Trust
You receive payments that are a stated percentage of the trust’s principal, based on its value as determined annually. You can continue to add assets to the trust over your lifetime. The value of the payments increases or decreases as the principal value of the trust appreciates or depreciates.
How It Works
1. You transfer cash, securities or other property to a Charitable Remainder Trust.
2. The Trust pays you (or you and your designated beneficiaries) a fixed or a variable payment for a period of years or for your lifetimes.
3. You receive a current income tax deduction for the charitable portion of your gift.
4. At the end of the designated time period or following the lifetime of all trust beneficiaries, the balance of the Trust is transferred to Maryville.
How You Benefit
You receive a current tax deduction for the charitable amount of your gift. The trust does not pay capital gains taxes when it sells the assets that you used to fund the trust.
Example Story: Making Non-Performing Assets Work
Jack is 62 years old and is nearing retirement. Jack owns a substantial amount of securities that he has acquired over time at relatively low cost. The securities have increased substantially in value, but yield very little income. Jack would like to convert these assets to income-producing assets, but is concerned that if he sells the securities, he will owe capital gains tax on the entire increase in value. This will leave him far less to reinvest for more income.
Then he learns about Charitable Remainder Trusts with Maryville. Jack establishes a Charitable Remainder Unitrust (CRUT), which is funded with highly appreciated stock valued at $100,000. The trust can sell the securities without paying capital gains taxes at the time of sale and reinvest the entire net proceeds to generate income for him in the future. Jack will receive an income payment quarterly for the rest of his life and will also receive a charitable income tax deduction in the year of his gift.
Comparison 5% Unitrust Private Sale
Value of Property $100,000 $100,000
Capital Gains Tax (@ 15%) $ 0 $ 15,000
Net for Reinvestment $100,000 $ 85,000
Charitable Deduction * $ 36,260 $ 0
Tax Savings at (@35%) $ 12,691 $ 0
* This value is based on a rate that changes monthly.
Donors who name Maryville as beneficiary of a charitable remainder trust automatically become members of the Visionary Society.
Is This Gift Right For You?
If you want to make a significant gift to Maryville and receive lifetime payments in return, a charitable remainder trust may be right for you. Charitable remainder trusts are ideal for those with highly appreciated assets that cannot be sold without incurring capital gains taxes or for those who are interested in securing a steady stream of income while making a major gift.
How To Establish a Charitable Remainder Trust
Maryville can provide you with expert guidance in establishing a charitable remainder trust. We will be happy to provide you with a customized gift proposal so that you can see how a charitable remainder trust can benefit you.
For more information on making a current or planned gift to Maryville, please contact us:
847.294.1982