The Advantages of a Charitable Remainder Trust

Gifts That Pay You Income

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. There are two ways to receive payments and each has its own benefits:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

An Example of How It Works

Woman happy Susan, 60, wants to make a gift to one of BrightFocus' research programs but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $250,000.

Susan receives $15,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $81,305* in the year she creates and funds the trust. This deduction saves Susan $22,765 in her 28 percent tax bracket.

*Based on annual payments and a 2.4 percent charitable midterm federal rate. Deductions vary based on income earned.

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Next Steps

  1. Contact Lauren Fields at 301-556-9397 or lfields@brightfocus.org to talk about supporting one of our research programs by setting up a charitable remainder trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include a BrightFocus program in your plans, please use our legal name and federal tax ID.

Legal Name: BrightFocus Foundation
Address: 22512 Gateway Center Drive, Clarksburg, MD 20871
Federal Tax ID Number: 23-7337229. This is the number for all three programs.