|
home > help kids now > estate planning
Charitable Remainder Unitrusts
(Gift example*)
You are considering a gift to Riley Children's Foundation of $250,000, but you are concerned about the capital gains consequences of liquidating assets, and reducing your and your spouse's cash flow.
You and your spouse, ages 70 and 68,
own farmland that has doubled in value and consequently generated several offers
to purchase. You decide to place the land into a net-income unitrust that
will pay 5% of
the trust's value for your lifetime (initially from rental income from the
farm, then a percentage of the proceeds of its sale) to the two of you. The
remainder of the unitrust will go to Riley Children's Foundation .
What are your benefits?
|
Comparison
|
Unitrust
|
Private Sale
|
|
Contribution/Sale Proceed
|
$250,000
|
$250,000
|
|
Capital Gains Tax (@15%):
|
0
|
$18,750
|
|
Net for reinvestment
|
$250,000
|
$231,250
|
|
First year's income (@ 5%)
|
$12,500
|
$11,562
|
|
Charitable deduction
|
$101,935
|
0
|
|
Tax savings @ 33% rate
|
$33,639
|
0
|
|
Total benefit, first year
|
$46,139*
|
$11,562
|
|
Unitrust payment plus tax savings from charitable deduction
|
|
Click here to calculate the benefits a unitrust would give you.
|
|
*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
|
|
Note: The Unitrust is not the only gift plan that pays you lifetime income. Compare its benefits with those of the annuity trust and the gift annuity.
|
For more information
Email us, complete the personal illustration form, or call us at 1.877.TO.RILEY so that we can assist you through every step of the process.
Riley Children's Foundation
30 South Meridian St. Suite 200
Indianapolis, IN 46204-3509
1.877.TO.RILEY | Fax: 317.634.4478
E-mail: plannedgiving@rileykids.org |
|
 |
|
