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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 University of Louisiana.

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, UL will use the property remaining for the purpose you have specified.

Example:

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 UL!

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 UL Lafayette program important to you.
• You will be invited to join the Louisiana Heritage Society™ for this legacy gift.

For more information about a Charitable Remainder Trust or other life income gift, please contact David Comeaux, Director of Planned Giving, at (337) 482-0922 or send him an e-mail.

Email David Comeaux