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 Charitable Remainder Unitrust (CRUT)

 

With a charitable remainder unitrust, you establish a trust with assets avoiding exorbitant estate taxes. You receive a percentage of the value of the trust for life. The remainder is given to Wofford.

How It Works:

A charitable remainder unitrust 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 percentage of the value of the trust is paid out annually (typically about 5%) to you and/or others you designate
  • When the trust terminates, the principle 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 betas free
  • Appreciated Securities- Using stocks allows you to avoid a portion of capital gains tax
  • Real Property- The trust sells your property tax-free

 

 Benefits:

  • Provides income for life, lives or a term of years
  • 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 concerned about the high cost of capital gains tax on the sale of your appreciated property. Or, if you want to make a significant gift to Wofford while maintaining an income stream.
  

Example: