Charitable Remainder Trusts
How it works
- You transfer cash, securities, or other property to a trust.
- You receive an income tax deduction and pay no capital gains tax on transfer to trust. During its term, the trust pays a fixed amount each year to you or to anyone you name.
- When the trust ends, its remaining principal passes to Cooper.
The trust can be tailored to meet your needs and objectives, such as generating higher income from assets you currently own, building increased retirement income, or providing financial security for your loved ones.
Some of the benefits of Charitable Remainder Trusts include:
- Using cash, appreciated securities, or other assets to fund the Trust
- Potentially increasing income
- Income tax deduction for the ultimate gift to The Cooper Union
- Avoiding capital gains taxes if appreciated assets are used to fund the Trust
- Maximum flexibility for the donor with respect to:
- Income recipients - the donor, and/or family members or friends
- Time period of the trust -for someone's lifetime - or for a specified number of years
- Level of income - donor chooses payout rate
- Type of income - fixed or variable
- Retirement planning
- Providing income to others such as parents or children
- Making a significant difference to The Cooper Union
There are two types of Charitable Remainder Trusts—the Charitable Remainder Annuity Trust, which pays the income beneficiary a fixed income each year, and the Charitable Remainder Unitrust, which pays a variable income over the life of the trust. The type of trust you choose will depend upon your own goals and objectives.
To learn more about how a charitable remainder trust could work in your particular case, or for gift planning ideas tailored to your personal situation, please contact Donna Lippman, Director of Planned Giving, at 212.353.4172 or firstname.lastname@example.org. There is no fee or obligation for this service.