A charitable remainder trust is a trust vehicle to which you transfer assets while retaining the right to receive income for life or a term of years. You can also name survivor beneficiaries to receive an income stream. The income may be variable (Unitrust) or fixed (Annuity Trust).
A unitrust, is a trust which will pay you and/or another beneficiary a "fixed percentage" (at least 5%) of the market value of the trust assets as revalued annually.
Although the percentage payout never changes, the value of the assets will grow or change over time. As a result, income distributions made annually, semi-annually or quarterly, will also grow or change.
This trust is a particularly beneficial option if you own assets which have appreciated in value but are either non-income producing or low-yielding (such as real estate or securities) and you wish to avoid paying a capital gains tax.
Once such assets are transferred to the unitrust, they can be sold and the proceeds reinvested, in most cases without incurring capital gains tax liability. You may make additional gifts to a unitrust in the future.
The most versatile type of trust, this can be tailored to meet your particular needs and investment objectives.
An annuity trust pays you and/or another beneficiary a "fixed dollar amount" each year during your lifetimes. This fixed payout is agreed upon when the trust is established (at least 5% of the initial value of the trust).
This arrangement is particularly attractive if the fixed payout feature is important to you. Distributions are made on an annual, semi-annual, or quarterly basis. An annuity trust cannot receive additional contributions.
Consider the Advantages
As stated previously, the material in this entire section ("Giving Opportunities") of our website is designed to furnish our alumni and friends with general information. It is not intended as legal or financial advice. When considering a charitable gift, be sure to consult your attorney, professional adviser or accountant to ensure that it meets your individual circumstances. The Office of Institutional Advancement will be happy to assist you and your advisers in developing an approach that will best fit your needs and desires. If you would like further information concerning giving opportunities, please contact the Office of Institutional Advancement, Hellenic College and Holy Cross Greek Orthodox School of Theology, 50 Goddard Avenue, Brookline, MA 02445, (617) 731-3500.