Charitable Remainder Unitrusts
Gift Example
The example below is based on a factor that changes monthly. Request for a personal gift illustration based on the latest rates.
Basic Unitrust - Gift of Stock
You are considering a $250,000 gift to Woodland Healthcare Foundation, but you are concerned about the capital gains consequences of liquidating assets, and reducing cash flow for you and your spouse.
You and your spouse, ages 70 and 68 own appreciated stock that has doubled in value. You decide to place the assets into a unitrust that will pay 5 percent of the trust's value for your lifetime to the two of you. Any remainder in the trust after obligations to you have been fulfilled will pass to Woodland Healthcare Foundation to support the ministry you choose.
| 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 |
$101,328 |
0 |
| Tax savings @ 35% rate |
$33,438 |
0 |
| Total benefit, first year |
$45,938* |
$11,562 |
| *Unitrust payment plus tax savings from charitable deduction |
|
|
Click here to calculate your unitrust benefits
Note: The unitrust is not the only gift plan that increases your cash flow. Compare its benefits to the annuity trust and the gift annuity. |
Flip Unitrust - Gift of Real Estate
You are considering a $250,000 gift to Woodland Healthcare Foundation, but you are concerned about the capital gains consequences of liquidating assets, and reducing cash flow for you and your spouse.
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 charitable remainder unitrust that will pay 5 percent of the trust's value for your lifetime to the two of you. Until the property is sold, the trust will pay you either the net-income generated by the trust or 5 percent of the trust value (whichever is less). Any remainder in the trust after the obligations to you have been fulfilled will pass to Woodland Healthcare Foundation to support the ministry you choose.
| 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 |
$101,328 |
0 |
| Tax savings @ 35% rate |
$33,438 |
0 |
| Total benefit, first year |
$45,938* |
$11,562 |
| *Unitrust payment plus tax savings from charitable deduction |
|
|
Click here to calculate your unitrust benefits
Note: The unitrust is not the only gift plan that increases your cash flow. Compare its benefits to the annuity trust and the gift annuity.
|
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