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TRUST OPTIONS
Charitable Remainder Annuity Trusts
Charitable Remainder Unitrusts
 
Charitable Remainder Annuity Trusts
A trust is an estate-planning instrument that provides lifetime income. A charitable remainder annuity trust is created by irrevocably transferring assets to a trust that pays you a fixed dollar amount annually for life. You also can provide for your spouse or another survivor. At the end of the beneficiaries' lives, the trust principal (remainder) goes to Braille Institute.

Here is an example of how a charitable remainder annuity trust works. Elizabeth transfers $200,000 to an annuity trust. She elects to receive $16,000 annually for life (or quarterly payments of $4,000). There is a significant charitable deduction of approximately $90,000.
Some advantages of charitable remainder annuity trusts include the following:

No capital gains are incurred when you transfer appreciated property to fund an annuity trust.

The trust is not taxed on gain if it sells appreciated property for reinvestment (except in tax-exempts).

You will receive the same estate tax savings as for charitable gifts by will.

You will reduce probate costs.
To request more information about setting up a planned gift at Braille Institute we invite you to call us at 1-800-BRAILLE (272-4553) or (323) 663-1111, Ext. 1256., Monday through Friday, 8:30 am - 5:00 pm (PST).
Or, e-mail us at: development@brailleinstitute.org
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Charitable Remainder Unitrusts
This life income plan also is created by irrevocably transferring assets to a trust that pays you income for life. Again, you also can provide income for your spouse or another survivor. At the end of the beneficiaries' lives, the trust principal (remainder) goes to Braille Institute.

The difference here is that the payments are not a fixed dollar amount. They are determined each year by multiplying a fixed percentage by the fair market value of the trust assets, as revalued each year. You decide the percentage. The contribution deduction each year depends on your age at the time the unitrust was established.

Here's an example of how a charitable remainder unitrust works. Daniel decides to receive 7% of the fair market value of the unitrust assets each year. He funds his trust with $300,000 and receives $21,000 the first year. A year later, the trust assets are worth $330,000 so he receives $23,100 for that year ($330,000 X 7%). If the unitrust assets are worth $360,000 the following year, he will receive $25,200 ($360,000 X 7%), and so on.
Some advantages of a charitable remainder unitrust include the following:
You will owe no capital gains tax when you transfer appreciated assets to fund your unitrust.

The trust is not taxed on gain from its sale of appreciated assets for reinvestments (except in tax-exempts).

You will have the same estate tax savings as for charitable gifts by will.

Probate expenses are reduced.
To request more information about setting up a planned gift at Braille Institute we invite you to call us at 1-800-BRAILLE (272-4553) or (323) 663-1111, Ext. 1256., Monday through Friday, 8:30 am - 5:00 pm (PST).
Or, e-mail us at: development@brailleinstitute.org
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