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
Susan, 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.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
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.
- Contact The Office of Gift Planning at (213) 740-2682 or firstname.lastname@example.org to talk about supporting USC by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- 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
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.