Charitable Remainder Unitrusts
Want to know how you can support the Sisters of the Holy Cross, get a
deduction for making a charitable donation AND keep a steady stream of
income for yourself? Talk to your financial advisor about setting up a
Charitable Remainder Unitrust.
In very simple terms it works like this:
Say you want to make a significant gift to the sisters and you own
appreciated stock that pays you a good dividend. But you depend on that
income each year, so you don’t want to sell it or donate it outright to
charity now. You can transfer this appreciated stock to an irrevocable
Charitable Remainder Unitrust that names the Sisters of the Holy Cross,
Inc. as the remainder beneficiary. You receive a deduction for a
charitable donation immediately. The trust sells the stock with no capital
gains penalty. Then each year you receive a percentage of the value of the
trust assets. After a set period of years (up to 20) or upon your death,
the remainder of the assets in the trust is given to the Sisters of the
Holy Cross. Everyone benefits!
There are many rules and variations for this type of planned gift and
care must be taken to set it up properly.
Be sure to get help from your financial and/or legal advisors.
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