Charitable Remainder Trust

Charitable Remainder Unitrust

The Charitable Remainder Unitrust is a way to make a charitable gift now and also have an income for life.

How does a Charitable Remainder Unitrust work?

You, as the donor, will irrevocably transfer money, property or stock to Waukesha Memorial Hospital Foundation. At the inception of the Trust, we will agree upon a fixed rate of return (minimum 5%). We, in turn, will invest those assets and pay you an income for life.

Minimum Gift Amount

The minimum amount to establish such a Trust is $25,000.

What are the benefits of a Charitable Remainder Unitrust?

• A charitable tax deduction
• Avoidance of all capital gains, when using appreciated stock or property for the gift
• Set rate of return (minimum of 5%)
• May be set for one or more beneficiaries
• Ability to add to the Trust at any time
• Possible reduction in estate taxes
• You may designate more than one charitable beneficiary for the proceeds of the Trust
• Make your gift to the foundation now and bypass probate

What's the difference between an Annuity Trust and a Unitrust?

A Unitrust pays income based on a fixed percentage (also agreed to when the Trust is created), but on a variable amount. So, if the Unitrust investments perform well, income may be increased. This also allows for long-term income growth. Because of this, a Unitrust works well for younger donors (aged 50-65). In addition, only a Unitrust can be used when a gift of property is the asset used to fund the Trust.

An Annuity Trust  pays income based on a fixed percentage (agreed to when the Trust is created) of a fixed amount. This means that the donor will always know exactly what the income will be - the amount will never change. Because of this, older donors, who count on the security of a fixed income, may like this kind of a Trust better.

How can I find out more?

There are several kinds of Charitable Remainder Unitrusts to choose from. For more information on this giving option, contact Nancy Seidl Nelson.  We would be happy to send you sample calculations explaining the income and tax benefits of such a gift, with no obligation.