A charitable remainder trust is a life-income gift whereby you irrevocably transfer securities, cash, or other assets to a trustee. The trustee can be The Rockefeller University, the donor, or a bank or other financial institution.
The trustee manages the investments of these assets and pays an income to you or your designated beneficiary for life, or for a specific number of years. After the trust terminates, the remaining principal goes to The Rockefeller University to support specific areas of research or for unrestricted purposes, whichever you prefer.
Types of Charitable Remainder Trusts
There are two basic types of charitable remainder trusts: the charitable remainder annuity trust and the charitable remainder unitrust. The essential difference between these two remainder trusts is the form of the income payment.
Advantages of Charitable Remainder Trusts
In addition to making a profound impact on biomedical research at The Rockefeller University, charitable remainder trusts offer significant benefits to the donor:
- Charitable remainder trusts provide income for life for the beneficiary—often a higher income than the gifted asset is currently generating.
- These trusts afford substantial tax savings, such as an immediate charitable deduction (based on the current value of the asset), elimination of capital gains tax upon the sale of appreciated assets in the trust, and removal of the asset from the donor’s taxable estate.
- If The Rockefeller University is designated as trustee, the charitable remainder trust is managed by the University’s highly qualified investment professionals.
Vickie Lister, Senior Director of Planned Giving, would be happy to discuss variations on these two basic models with you and your legal and financial advisors. The Rockefeller University recommends that you consult with your legal and financial advisors before proceeding with any planned gift.