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Charitable Remainder Unitrust

You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you are considering selling a highly appreciated piece of property and are looking for a way to save on taxes and plan for retirement. A charitable remainder unitrust might offer the solutions you need!

A charitable remainder unitrust pays you income that reflects the value of the trust's assets. With a unitrust your income has the potential to increase over time as the trust grows in value. Payments will vary based on the performance of the investments held in the trust and are based on a rate agreed upon when the trust is created. (The statutory minimum of 5 percent is our most commonly used rate.)

There are several trust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.

Benefits of a charitable remainder unitrust

• Receive income for life, for a term of up to 20 years or life plus a term of up to 20 years
• Avoid capital gains on the sale of your appreciated assets
• Receive an immediate charitable income tax deduction for the charitable portion of the trust
• Establish a future legacy gift to our UIndy

How a charitable remainder unitrust works

1. You transfer cash or assets to fund a charitable remainder unitrust.
2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
3. The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years.
4. You receive an income tax deduction in the year you transfer assets to the trust.
5. UIndy benefits from what remains in the trust after all the trust payments have been made.

Calculate the Benefits of Charitable Remainder Trusts

Next Steps:

1. Contact UIndy's Office of Gift Planning at 317-791-2553 or [email protected] for additional information on a charitable remainder unitrust or to speak with Darcy about which life income gift is right for you.
2. Seek the advice of your financial or legal advisor.