Charitable Remainder Annuity Trust

Charitable Remainder Annuity Trust pays income for life for up to 2 people. When you establish the annuity trust you transfer cash or property to the trust in return for a fixed dollar amount payout. In this way, you obtain a stable income that is not subject to market fluctuations. For example, if John Jasper establishes an annuity trust with $60,000 and wishes to receive 6% of the trust’s value as income; he will receive payments of $3,600 for life or for 20 years, regardless of the value of the trust.

Upon the death of both, all principal and undistributed income is transferred to the College.
Benefits of an Annuity Trust:

• Stable income
• A current income tax charitable deduction that can be carried forward for five years
• Bypass of the penalty gains tax on the sale of appreciated assets
• Estate tax savings