Charitable Remainder Trusts
A charitable remainder trust enables you to make a significant gift to Connecticut College and continue to enjoy lifetime income from the gift assets. The charitable remainder trust is a flexible strategy that can be designed to provide income for yourself, your spouse, or children and possibly other beneficiaries. This trust arrangement, created by federal tax law, requires you, the donor, to transfer assets irrevocably into a trust and allows you to reserve the right to receive a generous income from the assets. A wide variety of assets can be donated to a charitable remainder trust - cash, publicly traded securities, mutual funds, unencumbered real estate, and closely-held stock. There are two basic types - the annuity trust, which pays a fixed dollar amount of income each year, and the unitrust which provides the named beneficiaries - usually the donor and spouse - a percentage of the trust assets' annual fair market value. Annual payout rates usually range from 5% to 7% - depending on your financial, tax and charitable goals. Advantages of Charitable Remainder Trusts By setting up a charitable remainder trust, you may claim an immediate charitable deduction for a portion of the gift ammount. If you fund the trust with appreciated assets, you may increase your income and avoid capital gains taxes. You may also diversify your investment portfolio as well as simplify its management. The charitable remainder trust is truly a wonderful way to make a meaningful gift to Connecticut College. Although the word "trust" may sound intimidating, the logistics are quite simple. Connecticut College planned giving specialists are experienced and can guide you through the process. The suggested minimum for establishing a charitable remainder trust through Connecticut College is $100,000 or periodic gifts totaling that amount. How Will Connecticut College Use My Charitable Remainder Trust? Upon the death of the last income beneficiary, the trust assets can be used by Connecticut College either fot the general endowment or for a specific purpose chosen by you. You could direct that your assets create an endowed fund for a specific purpose such as scholarships, an academic department, etc. To see if a charitable remainder trust might help meet your financial and charitable goals, please call the planned giving office. The college will be glad to provide you with a general illustration. All inquiries are confidential.
Last Modified: Thursday, May 31, 2007 12:19