Trusts and Annuities
Trusts and annuities allow you to make a gift to The Cooper Union while generating income for yourself and your loved ones.
Charitable Gift Annuity
A Charitable Gift Annuity (CGA) is a simple agreement between you and The Cooper Union. You can establish a CGA with a minimum gift of $10,000. The annuitant must be at least 65 years of age when annuity payments begin.
When establishing a CGA, you receive an income tax deduction and may save capital gains tax. The Cooper Union then pays a fixed amount each year to you, or to anyone else you choose to name, for life. Typically, a portion of these payments can be tax-free. When the gift annuity ends, its remaining principal is distributed to The Cooper Union.
Deferred Charitable Gift Annuity
If you do not need increased income now, you may want to create a Deferred Charitable Gift Annuity (DGA) and receive annuity payments at a later date chosen by you. The amount of the annuity payments will be higher than they would have been if you had chosen to begin receiving payments immediately. The DGA arrangement allows you to take an income tax deduction now and generate additional payments later.
There are many different types of trusts you can create to benefit The Cooper Union. We have offered a small sample of the various kinds of trusts to get you started. If you or your advisor would like to learn more about gift vehicles not listed here, we welcome you to contact us.
Charitable Remainder Unitrust
A charitable remainder unitrust (CRUT) is a simple agreement by which you transfer cash, securities or other property to The Cooper Union for an immediate charitable income tax deduction, while avoiding a capital gains tax for appreciated assets. The Cooper Union then pays you or a beneficiary you name a fixed percentage of the trust for life. If your trust grows, so will your payments. You can establish a CRUT for a minimum gift of $100,000. When the trust ends, its remaining principal is distributed to The Cooper Union.
Charitable Remainder Annuity Trusts
A charitable remainder annuity trust (CRAT) is similar to a CRUT, but instead of paying beneficiaries a percentage of the trust’s value, it pays a fixed amount to you or someone you name for life. You can establish a CRAT for a minimum gift of $100,000. When the trust ends, its remaining principal is distributed to The Cooper Union.
Charitable Flip Unitrust
A flip unitrust can be an excellent way for you to give an asset that may take time to sell - real estate, for example - enabling you to receive substantial payments for life once the flip unitrust sells your asset. You might also be interested in using a flip unitrust to make a gift now that will supplement your income in the future, such as when you plan to retire.
Charitable Lead Unitrusts
This inter-generational wealth-transfer tool enables you to provide for your heirs – and for The Cooper Union – while sharply reducing gift or estate taxes. Because The Cooper Union benefits first, the trust assets can go to your heirs later at a reduced gift or estate tax cost.
When you establish a Charitable Lead Unitrust (CLUT) with a transfer of cash, securities, or other property, you receive an immediate charitable income tax or gift tax deduction depending on whether you or your heirs are the final recipients, and can avoid capital gains taxes on appreciated securities. During its term, the trust pays a fixed percentage of its value each year to The Cooper Union. As the trust grows, these payments grow. When the trust ends, its remaining principal passes either to you, your family, or any other heirs you name, and the trust’s growth passes to them tax-free. The minimum gift to establish a CLUT is $250,000.
Charitable Lead Annuity Trusts
Similar to a CLUT, a charitable lead annuity trust (CLAT) allows you to pass the remainder of your trust to your heirs tax free, but pays a fixed amount to The Cooper Union during the term of the trust instead of a percentage of its value. You can establish a CLAT with a minimum gift of $250,000.
The information contained herein is not intended as legal or tax advice. We recommend that you consult with your attorney or financial advisor for questions concerning your individual situation.