Charitable Remainder Annuity Trust
If you are tired of the fluctuating stock market and want to receive fixed payments, a charitable remainder annuity trust may provide you with the stability you desire. Perhaps you are contemplating selling highly appreciated property to begin planning for retirement. A charitable remainder annuity trust pays a fixed amount each year based on the value of the property at the time the trust is funded. And you save on taxes.
Flowchart: Donor funds an annuity trust with stock or cash. The donor receives payouts from the trust and
IU Health receives the remainder at the end of the trust term.
Benefits of a charitable remainder annuity trust
- Receive fixed income for life, lives, or a term of up to 20 years.
- Avoid capital gains tax on the sale of your appreciated assets.
- Receive an immediate charitable income tax deduction for the charitable remainder portion of your trust.
- Establish a legacy with IU Health Foundation.
How a charitable remainder annuity trust works
- You transfer cash or assets to fund a charitable remainder annuity trust.
- In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
- The trust is invested to pay fixed income to you or any other trust beneficiaries you select based on a life, lives, or a term of up to 20 years.
- You receive an income tax deduction in the year you transfer assets to the trust.
- The money remaining in the trust after all the trust payments have been made is used to support a healthier Indiana.
Contact us
If you have any questions about charitable remainder annuity trusts, please contact us. We would be happy to assist you and answer any questions you might have.
