Charitable Remainder Trust

Charitable remainder trusts present an opportunity to make a significant campaign gift, provide income for yourself or your family, and maximize tax savings. Because charitable remainder trusts are individually managed, we can design a trust that will meet your financial and philanthropic goals.

Benefits

•	Income for life (or term of years)
•	Expert trust and investment management
•	Immediate charitable tax deduction when you set up gift
•	No capital gains tax when funded with appreciated assets
•	Reduced income, capital gain, and estate tax
•	Campaign credit for full amount of gift
•	Satisfaction of supporting Northeastern

Example
Phil and Carol, ages 65 and 64, hold highly appreciated securities that are paying low dividends (2.5%).

Theyl would like to increase their income, however, they do not wish to diminish their principal assets by paying capital gain taxes to "unlock" the earning potential of the securities.

Phil and Carol establish a 6% charitable remainder unitrust with the equivalent of $1,000,000 of securities that they acquired for $100,000 some years ago. This trust will pay them 6% of the value of trust assets.

Because trust assets are revalued each year, they could enjoy a growing stream of income in future years.

Benefits include the following:

Income Benefits:
	Payout Rate	6%
	First Year Beneficiary Payment	$60,000
Tax Benefits:
	Immediate Charitable Income Tax Deduction (deductible up to 30% of AGI with a 5 year carry forward)	$287,290
	Avoidance of capital gain due to be taxed if asset was sold	$900,000

>> Read a real-life example of a charitable remainder trust.