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 Spelman College.
- 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 Spelman College during your lifetime.
Example
Comparison of Benefits: Unitrust and Annuity
Trust |
This
example is based on a factor that changes monthly. Contact our office
for a personal illustration based on the latest rates. |
Assumptions: |
> Beneficiaries
aged 72 and 70
> 28% income tax bracket
> Holding $100,000 in stock with $50,000 cost basis |
. |
Unitrust |
Annuity Trust |
Contribution |
$100,000 |
$100,000 |
Income Rate |
5% |
5% |
First Year's Income |
$5,000 |
$5,000 |
Future Income |
Variable |
$5,000/year |
Charitable Deduction* |
$43,764 |
$43,367 |
*Based on a Federal Discount
Rate of 5%. |
More
To learn more about charitable remainder annuity trusts, Email us, complete the Information Request Form, or call us at so that we can assist you.
Spelman College
350 Spelman Lane, S.W., Box 1551
Atlanta, GA 30314
(404) 270-5046 | Fax: (404) 270-5050
