Charitable Remainder Trusts
The charitable remainder trust is a tax-wise way to receive a lifetime income and ultimately provide a generous gift for the Delgado Community College.
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:
You will receive income for life or a term of years (that you select).
If you make your gift with low-yielding securities or other assets, you will increase your current income.
If you make your gift with appreciated securities or other assets, you may avoid capital gains taxes.
You will receive an immediate income tax charitable deduction.
You may reduce your estate tax.
You will have the satisfaction of supporting a Delgado Community College program important to you.
You will be invited to join the Delgado 1921 Society for this legacy gift.
For more information about a Charitable Remainder Trust or other life income gift, please call (504) 671-5412