Charitable Remainder Unitrusts
How it works
You transfer cash, securities or other appreciated property into a trust.
The trust pays a percentage of the assets market value, re-valued annually, to you or to beneficiaries you name.
When the trust ends, the principal passes to Mercy Foundation North.
Benefits
- You receive an immediate income-tax deduction for a portion of your contribution to the trust.
- You pay no capital-gains tax on appreciated assets you donate.
- You or your designated beneficiaries receive payments for life or a term of years.
- You can make additional gifts to the trust as your circumstances allow and qualify for additional tax deductions.
- You can make a significant gift that benefits you now and Mercy Foundation North later.
Consider a charitable remainder unitrust if you:
- Want to make a major gift to Mercy Foundation North while retaining or increasing your cash flow from the assets you contribute
- Have appreciated assets – securities, a business, or investment real estate – and want to avoid the capital-gains cost of a sale
- Want the income from your gift to be able to grow over time
- Want maximum flexibility in the operation of your gift:
- Income paid to your beneficiary for a term of years instead of their lifetime
- Income to go to more than one beneficiary
- The option of choosing your gift plan trustees
- To donate an appreciating, but temporarily illiquid, asset to Mercy Foundation North
Related Links
More about charitable remainder unitrusts
Gift example
Planning tips