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Charitable Remainder Annuity Trusts
A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, your spouse, and/or other beneficiaries a fixed annuity income for life or a term of years. You receive a charitable income tax deduction for a portion of your gift to the trust. No additional gifts are permitted. After the annuity trust terminates, the accumulated principal or "remainder interest" goes to CPL.
- Receive stable, predictable income (particularly appealing to older donors and income beneficiaries).
- Avoid all upfront capital gains tax on any appreciated assets you transfer to the annuity trust.
- Receive all or partly tax-free income if your annuity trust is invested for that objective.
- Reduce your estate tax liability by removing a large taxable asset.
- Make a satisfying and substantial gift to CPL during your lifetime.
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Example
Comparison of Benefits: Unitrust and Annuity Trust
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This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
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Assumptions:
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> Beneficiaries aged 72 and 70
> 28% income tax bracket
> Holding $100,000 in stock with $50,000 cost basis
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Unitrust
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Annuity Trust
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Contribution
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$100,000
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$100,000
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Income Rate
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5%
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5%
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First Year's Income
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$5,000
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$5,000
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Future Income
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Variable
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$5,000/year
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Charitable Deduction*
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$43,764
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$43,367
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*Based on a Federal Discount Rate of 5%.
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More
To learn more about charitable remainder annuity trusts, Email us, complete the Information Request Form, or call us at 610-869-4902 so that we can assist you.
Canine Partners For Life
P.O. Box 170
Cochranville,PA 19330-0170
610-869-4902 | Fax: 610-869-9785
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