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Charitable Remainder Unitrusts
(Gift example*)

You are considering a gift to St. Jude Children's Research Hospital of $250,000, but you are concerned about the capital gains consequences of liquidating assets, and reducing your family's cash flow.

You and your spouse, ages 70 and 68, own a small commercial building that has doubled in value and consequently generated several offers to purchase. You decide to place the building into a net-income unitrust that will pay 5 percent of the trust's value for your lifetime (initially from the rental income from the building, then a percentage of the proceeds of its sale) to the two of you. The remainder of the unitrust will go to St. Jude Children's Research Hospital .

What are your benefits?

Comparison

Unitrust

Private Sale

Amount transferred

$250,000

$250,000

Capital Gains Tax (@15%):

0

$18,750

Net for reinvestment

$250,000

$231,250

First year's income

$12,500

$11,562

Charitable deduction

$101,935

0

Tax savings @ 33% rate

$33,639

0

Total benefit, first year

$46,139*

$11,562

Unitrust payment plus tax savings from charitable deduction

Click here to calculate the benefits a unitrust would give you.

*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.

Note: The Unitrust is not the only gift plan that pays you lifetime income. Compare its benefits with those of the annuity trust and the gift annuity.

For more information

E-mail us, complete the personal illustration form or call us at (800) 395-1087 so that we can assist you through every step of the process.


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