There are two different types of charitable remainder trusts. In both, a donor gives stock, cash, or other assets to a trust. These assets are invested and the trust makes regular distributions to the donor or other beneficiary. The distributions may last either for a fixed period of time or until the donor dies. This is agreed upon when the trust is created. The donor is allowed to claim a tax deduction for the present value of the gift that will ultimately come to the University of Montevallo Foundation. When the trust terminates, the Foundation receives the gift of the remaining assets.

A charitable remainder unitrust is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of assets in the trust. The assets are valued annually and, if the trust value increases, the payment to the beneficiaries increases.

A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.

The information contained on this web page is not intended as legal or tax advice. Donors should, therefore, consult with their personal advisors for such advice.

BACK