Charitable Remainder Unitrust
(Gift example*)
Bill, age 75, and his wife Rita, age 73, establish a Charitable Remainder Unitrust with a cash gift of $250,000. Their trust provides them income for their lifetimes, which could continue for the surviving spouse, or for a fixed term.
Bill and Rita receive payments of 5% of the value of the trust each year, which may increase or decrease with the value of the trust. By naming Yale as the trustee, their trust is invested by the Yale Investments Office, which provides the potential for significant income growth. They also receive a federal income tax deduction of $119,282.50 in the year of the gift and receive return payments that keep pace with inflation.
Yale’s financial management offers Bill and Rita a chance to increase their annual return and allows them to maximize their giving to Yale.
Summary of Benefits
5% Charitable Unitrust |
|
ASSUMPTIONS: |
|
Beneficiary Ages |
75 |
Cash Donated |
$250,000.00 |
Payout Rate |
5% |
Payment Schedule |
quarterly |
BENEFITS: |
|
Charitable Deduction |
$119,282.50 |
Estimated Payments in First Full Year |
$12,500.00 |
Basic Gift Illustrations IRS Discount Rate is 3.4% These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on several factors, including the timing of your gift. |
|