A charitable remainder trust is generally established with a gift of $50,000 or more, and the trust pay-out rate is usually 5% to 8%. The trust can be funded with cash, stocks, bonds, or real estate. The trust will pay out either a fixed amount (annuity trust) or a percentage of the trust income (unitrust). Upon termination of the trust, Delgado Community College will use the property remaining for the purpose you have specified.
A husband and wife, both aged 65, fund a charitable remainder unitrust with $100,000 in appreciated securities that cost them $50,000 several years ago. They choose a 6% payout rate and receive a charitable deduction of $28,679. Their first year's income will be approximately $6,000. Future income will vary with the trust value. Assuming an 8% total return for the trust, the before-tax benefit to income recipients over their life expectancies is estimated to be over $192,000! After their lifetimes, the remaining principal estimated to be over $160,000 passes to Delgado Community College.
Advantages of a Charitable Remainder Trust:
For more information about a Charitable Remainder Trust or other life income gift, please contact Nita Hutter, Director of Development, at (504) 671-5412 or send an e-mail to firstname.lastname@example.org.