|
||||||||||
|
Charitable Remainder Unitrusts
(Gift example*)
You are considering a gift to Save the Children of $250,000, but you are concerned about the capital gains consequences of liquidating assets, and reducing your and your spouse's cash flow.
You and your spouse, ages 70 and 68, own a small commercial building that has doubled in value and consequently generated several offers to purchase. You decide to place the building into a net-income unitrust that will pay 5% of the trust's value for your lifetime (initially from the rental income from the building, then a percentage of the proceeds of its sale) to the two of you. The remainder of the unitrust will go to Save the Children .
What are your benefits?
|
Comparison |
Unitrust |
Private Sale |
|
Amount transferred |
$250,000 |
$250,000 |
|
Capital Gains Tax (@15%): |
0 |
$18,750 |
|
Net for reinvestment |
$250,000 |
$231,250 |
|
First year's income |
$12,500 |
$11,562 |
|
Charitable deduction |
$99,240 |
0 |
|
Tax savings @ 33% rate |
$32,749 |
0 |
|
Total benefit, first year |
$45,249* |
$11,562 |
|
Unitrust payment plus tax savings from charitable deduction |
||
|
*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates. |
||
|
Note: The Unitrust is not the only gift plan that pays you lifetime income. Compare its benefits with those of the annuity trust and the gift annuity. |
||
For more information
Email us, complete the personal illustration form, or call us at 1-800-544-4470 so that we can assist you through every step of the process.
