Charitable Remainder Trust

Charitable Remainder Unitrust (CRUT)

How a CRUT works:

• Establish a CRUT and transfer your highly appreciated asset(s) into the trust.
• The asset(s) are sold without creating a taxable event, increasing the assets' income potential. The proceeds are now invested for generating income to the donor(s).
• The Unitrust pays a fixed percentage (minimum 5%) on the annual trust value. If the trust grows in value, the income will also increase. The principal can also be used to meet minimum payout requirements.
• The CRUT may receive additional contributions over time.
• The donor receives a tax deduction based on an IRS formula.
• At the death of the donor(s), the charity receives the remaining assets in the trust.

Charitable Remainder Annuity Trust (CRAT)

How a CRAT works:

• Establish a CRAT and transfer your highly appreciated asset(s) into the trust.
• The asset(s) are sold without creating a taxable event, increasing the assets' income potential. The proceeds are now invested for generating income to the donor(s).
• The Annuity pays a fixed percentage of the trust assets (minimum 5%) as income. The income is fixed and is paid regardless of investment performance.
• The CRAT may not receive additional contributions once the donor establishes it.
• The donor receives a tax deduction based on an IRS formula.
• At the death of the donor(s), the charity receives the remaining assets in the trust.

For more information, please contact:

Scott Park, Assistant Vice President for Development,
Major and Deferred Gifts
(800) 798-8100 x7587
scottpark@augustana.edu