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University of Southern California

Charitable Remainder Trusts

Solutions for Those Looking For Income and Tax Benefits

A charitable remainder trust may offer you tax benefits and the option for income.

The trust 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 revalued on an annual basis. If the value of the trust increases, so do your payments. Alternatively, if the value decreases, however, so will your payments.

How It Works

Woman hugging dogSusan, age 75, wants to make a gift to USC but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $25,000 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 $301,905* in the year she creates and funds the trust. This deduction saves Susan $96,610 in her 32% tax bracket.

*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.

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Gifts That Pay

Your payments depend on your age at the time of your gift. If you are younger than 60, we recommend that you learn more about your options and download this complimentary guide Plan for Retirement With a Deferred Gift Annuity.

Calculate Your Benefits

Submit a few details and see how a charitable remainder trust can benefit you.

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Next Steps

  1. Contact The Office of Gift Planning at (213) 740-2682 or giftplanning@usc.edu to talk about supporting USC by setting up a charitable remainder trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include USC in your plans, please use our legal name and federal tax ID.

Legal Name: University of Southern California, a California not-for-profit corporation, with its principal place of business at Los Angeles, California.
Address: University Park Campus, ALM 2nd Floor, MC 0461, Los Angeles, California 90089-4017
Federal Tax ID Number: 95-1642394

USC Office of Gift Planning

A charitable bequest is one or two sentences in your will or living trust that leave to University of Southern California a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I hereby give to the University of Southern California, a California not-for-profit corporation, with its principal place of business at Los Angeles, California:

the sum of $________________ [amount] AND/OR the following described property: ________________ [description] AND/OR ________% [percent] of the residue of my estate. This gift is for the unrestricted use of the university. OR this gift is designated for ___________________ [describe purposes such as scholarships, faculty support, equipment, athletics, etc. and/or any specific school at USC, if you wish]." 

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to USC or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to USC as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to USC as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and USC where you agree to make a gift to USC and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
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