Charitable Remainder Annuity Trusts
(Gift example*)
You are holding appreciated stock valued at $100,000 from
which you receive a $1,000 dividend annually. You would like to reinvest for
more income; however, you will owe a capital gains tax on $90,000 of profit
if you do. Instead, you contribute the to a charitable annuity trust
paying you and your spouse (ages 70 and 68) $5,000 annually.
What are the benefits?
Amount
contributed |
$100,000 |
Cost
basis |
$10,000 |
Capital
gains tax avoided (90,000 x 15%) |
$13,500 |
|
Annual
income (fixed) |
$5,000 |
Charitable
deduction * |
$40,328 |
Tax
savings @ 33% |
$13,308 |
| Click here to calculate the
benefits a Charitable Remainder Annuity Trust would give you.
|
Note:
The Annuity Trust is not the only gift plan that pays you a return. Compare its
benefits with those of the unitrust and the gift annuity. |
* This example is based on a factor that changes monthly. Contact our
office for a personal illustration based on the latest rates.
|
For more information
Email us, complete the personal illustration form, or call us at 215-898-9486 so that we can assist you through every step of the process.
PENN Medicine
Christine S. Ewan, J.D.
Director, Planned Giving
3535 Market Street, Suite 750
Philadelphia, PA 19104-3309
215-898-9486 | Fax: 215-573-2186
E-mail: cewan@upenn.edu
