Give and receive

Charitable remainder trusts

Your gift of appreciated property to the UO could provide you with income payments for life.

CRT-220Consider a charitable remainder trust if you…

  • want to receive income for life
  • can use an income tax deduction
  • own appreciated real estate or stock
  • want to make a gift to the UO

How it works

You establish a charitable remainder trust and irrevocably transfer the property into it.

At the time you make this transfer, you will qualify for an income tax charitable deduction. Often this is between 30 and 60 percent of the transferred property’s value.

You will not have to pay capital gains tax when you transfer the asset to the trust.

The sales proceeds remain in the trust and provide you with income payments for life. These payments will be taxable to you.

Example

During their annual tax review, Harry and Sally Mallard mentioned their wish to create a scholarship to help UO students.

They also expressed concern about the vacation house they own. At seventy, they don’t want to deal with renters. However, they hesitated to sell because they would have to pay capital gains.

Their accountant said giving the house to the UO could provide them with income for life. They could also avoid immediate capital gains, and, ultimately, create a permanent scholarship fund.

In January 2014, the Mallards decided to transfer the house, valued at $350,000, into a charitable remainder trust with a 5 percent payout rate. They immediately qualified for a $143,780 income tax deduction.

When the property sells, the trust will begin making regular payments to them for the rest of their lives. Afterward, the remaining principal will provide scholarships for generations to come.

Learn how a charitable remainder trust can benefit you and the UO. E-mail or call our office, 800-289-2354.

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