Charitable remainder annuity trusts and charitable remainder unitrusts make payment to you (or someone you designate) for a period of years, after which the "remainder" becomes the property of Symphony Space. These trusts can be beneficial in many situations, including providing retirement income, providing support for relatives and funding educational expenses.
These gifts may be funded with cash or appreciated property. A charitable remainder trust can:
- Provide payments annually for life or a term you choose for you and/or another person
- Reduce your tax bill through a charitable deduction
- Make it possible for you to increase income from highly-appreciated but low-yielding securities, while saving, delaying or altogether avoiding capital gains tax
- Diversify investments without incurring capital gains tax
- Offer professional investment management
- Save estate and gift taxes
When you establish either a charitable remainder annuity trust or a charitable remainder unitrust, you may choose to have payments made to you or to another beneficiary for a period of time up to 20 years, rather than for the lifetime of one or more beneficiaries. Some donors decide to provide payments only for the period of time required to meet a fixed need, such as educational expenses.
Trusts can be set up during your lifetime or as part of your will. Annuity trusts and unitrusts are described below, but there are a number of available variants on these plans, with which your financial or tax advisors can help you.
Steady Income through an Annuity Trust
A charitable remainder annuity trust pays to you or the person(s) designated by you (or you, followed by another person(s) designated by you), to receive fixed annual payments for life or for a stated period of time. At your death (or the death of your surviving spouse, partner or other person you designate), whatever remains in the trust will be distributed to Symphony Space.
Annuity trusts are typically feasible in amounts of $100,000 or more; annual payments will be at least 5% of the amount initially placed in the trust (the exact amount is determined when the plan is created). A charitable income tax deduction is allowed at the time you create your trust. Its size depends on a number of factors, including the age of the person(s) receiving payments, the payment rate and other factors.
Potential Variable Income through an Unitrust
Like the annuity trust, a unitrust provides annual payments to you or the person(s) you designate, but unlike the annuity trust the payments from a unitrust vary with the value of the assets in the trust. In a unitrust, each year, a percentage of the value of the trust's assets is paid to you or to the person(s) designated by you. As with the annuity trust, what remains in the trust at your death (or the death of your designated beneficiary) will be distributed to Symphony Space.
Like annuity trusts, unitrusts are typically feasible in amounts of $100,000 or more. Additions may be made from time to time to a unitrust and you would receive a tax deduction for a portion of each amount contributed.
Other options for planned giving: