Charitable Remainder Trusts

Unitrusts and Annuity Trusts

If you are interested in maximum flexibility and effectiveness from your gift, consider a charitable remainder trust (CRT). A unitrust pays you and/or other beneficiaries income as a fixed percentage of the principal. The unitrust is revalued annually, and income in excess of the percentage payout is reinvested. An annuity trust pays you and your beneficiaries a fixed income.

CRT's may pay income to multiple beneficiaries, for life or a term or years. A unitrust may be structured to invest solely for growth for a term of years, an attractive way to help provide for future retirement or tuition needs while also making a substantial gift to Orange Coast College. An annuity trust may hold tax-free securities and pass tax-free income through to the beneficiaries.

You, an advisor, or a financial institution may serve as the trustee of a CRT.

Comparison of Benefits, Unitrust and Annuity Trust

Assumptions:

  • Beneficiaries aged 72 and 70
  • 30% income tax bracket
  • Holding $100,000 in stock with $50,000 cost basis

Unitrust

Annuity Trust

Contribution

$100,000

$100,000

Income Rate

5%

5%

First Year's Income

$5,000

$5,000

Future Income

Variable

$5,000

Charitable Deduction

$43,850

$45,091

To learn more about charitable remainder trusts, email us, complete the personal illustration form, or call us at 714-432-5707 so that we can assist you.


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