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Charitable Remainder Annuity Trust (CRAT)


With a charitable remainder annuity trust, you establish a trust with assets avoiding exorbitant estate taxes. You receive a fixed income payment for life or a term of years and the remainder is given to Wofford.

How It Works:

A charitable remainder annuity trust involves one or more donors, trustees and beneficiaries.

    • You transfer, cash, stock, mutual funds or real property to an irrevocable trust
    • You claim a current charitable income tax deduction
    • Trusts funded through appreciated property are not subject to capital gains tax
    • You can set up the trust to last for life or for a term of years
    • A fixed payment provides income for you and/or your loved ones
    • When the trust terminates, the principal remaining is distributed to Wofford (this is often more than the original amount invested in the trust) to support an area you have chosen

Assets Used:

    • Cash – If funded with cash, a significant portion of the annuity income will be tax free
    • Appreciated Securities – Using stocks allows you to avoid a portion of the capital gains tax
    • Real Property – The trust sells your property tax fee

Benefits

    • You receive a fixed income for life, lives or term of years
    • You avoid capital gains on the sale of your appreciated assets
    • A charitable income tax deduction can be claimed
    • Avoidance of estate taxes
    • A sizeable gift is made to Wofford to support an area of your choice, such as scholarships, faculty support and chairs, academic programs and more.

You might be interested if…

...you are tired of low-yielding CDs or the fluctuating stock market and you want the stability of a fixed income. Or, if you want to make a significant gift to Wofford while maintaining an income stream.

Example: