Charitable Remainder Trusts offer the opportunity to make a generous gift to the Seminary now and receive income for life, or a period of years, after which the trust's principal passes to the Seminary. These trusts are available in two forms, according to the needs and preferences of the donor: the annuity trust and the unitrust.
The annuity trust provides the donor with a fixed income for the life of the trust based on the trust's initial value. No additions may be made to this trust. The unitrust pays a fixed percentage of the trust's value, as revalued annually, thereby providing income that may vary from year to year. Additions may be made to a unitrust. Variations of this trust also lend themselves to retirement planning and the receipt of non-income-producing assets.
Apart from the distinctions cited above, Charitable Remainder Trusts offer these benefits to the donor:
- may provide for a spouse or other beneficiary
- income for life or a term of years (the amount is negotiable but must be at least five percent)
- avoidance of the capital gain tax when the trust is funded with appreciated property held longer than one year
- payments made quarterly or at other intervals convenient to the donor
- an income tax charitable deduction in the year of the gift, with carryover privileges for up to five additional years
- freedom from investment and management responsibilities
- estate tax savings
- an invitation to become a member of the Legacy Society
Seminary policy requires that all donors and beneficiaries be at least fifty years of age. A gift of fifty thousand dollars or more is also required.
For more detailed information about Charitable Remainder Trusts or any other life income plan offered by the Seminary, please contact the Director of Planned Giving, Lisa Titus.