Charitable Remainder Trust
A charitable remainder trust is a way to make an irrevocable gift to the University of Michigan, receive some immediate tax benefits and still receive annual income distributions from the assets during your lifetime(s). Upon the death of the last beneficiary, the trust principal becomes the University's and will be used according to your specified instructions. If you are interested in income growth as a hedge against inflation, the charitable remainder unitrust provides the potential for increased distributions over the life of the trust. The trust assets are valued annually. Payments to you or your designated beneficiary(ies) are typically made as a predetermined percentage of the value of the trust assets. Any growth in the trust over the annual distribution is added to the trust's principal. As the trust assets grow, so do payments to you or your designated beneficiary(ies).
A charitable remainder annuity is a way to make an irrevocable gift to the University of Michigan, receive some immediate tax benefits and still receive annual income distributions from the assets during your lifetime(s). Upon the death of the last beneficiary, the trust principal becomes the University's and will be used according to your specified instructions. A charitable remainder annuity trust is most attractive to people who want a fixed distribution. Each year the trust will distribute the payout amount determined at the time the trust is established. This amount is paid every year for the life of the beneficiary (ies), regardless of whether the trust grows or declines in value, as long as the trust is solvent.
To learn more about charitable remainder unitrust and other planned giving opportunities, please visit the University of Michigan planned giving web site by clicking here.