Charitable Remainder Trust
Solutions for Large Donations
If you have built a sizable estate and are looking for tax benefits and reliable income, consider a charitable remainder trust. At the end of the term, the balance in the trust will be donated to MICDS.
There are two ways you can receive income, each with its own set of benefits. The annuity trust pays you the same dollar amount each year, regardless of fluctuations in the market. The unitrust pays you a variable amount each year based on a fixed percentage of the fair market value of the trust. The amount of income you receive is recalculated each year.
An Example of How It Works
Susan, 75, wants to make a gift to MICDS but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $299,845* in the year she creates and funds the trust. This deduction saves Susan $95,950 in her 32% tax bracket.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate Your Benefits
Submit a few details and see how a charitable remainder trust can benefit you.
- Contact Kalleen Rose at 314-995-7455 or email@example.com to talk about supporting MICDS by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include MICDS in your plans, please use our legal name and federal tax ID.
Legal Name: Mary Institute and Saint Louis Country Day School
Address: 101 North Warson Road, Saint Louis, Missouri 63124
Federal Tax ID Number: Please contact us for our federal tax ID number.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.