Charitable Remainder Unitrusts

You are considering a gift to Penn of $250,000, but you are concerned about the capital gains consequences of liquidating assets, and reducing your and your spouse's cash flow.

You and your spouse, ages 70 and 68, own a small commercial building that has doubled in value and consequently generated several offers to purchase. You decide to place the building into a net-income unitrust that will pay 5% of the trust's value for your lifetime (initially from the rental income from the building, then a percentage of the proceeds of its sale) to the two of you. The remainder of the unitrust will go to Penn .

Comparison	Unitrust	Private Sale
Amount transferred	$250,000	$250,000
Capital Gains Tax (@15%):	0	$18,750
Net for reinvestment	$250,000	$231,250
First year's income	$12,500	$11,562
Charitable deduction	$101,935	0
Tax savings @ 33% rate	$33,639	0
Total benefit, first year	$46,139*	$11,562
Unitrust payment plus tax savings from charitable deduction
Click here to calculate the benefits a unitrust would give you.
*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
Note: The Unitrust is not the only gift plan that pays you lifetime income. Compare its benefits with those of the annuity trust and the gift annuity.

For more information

Email us, complete the personal illustration form, or call us at (800) 223-8236 so that we can assist you through every step of the process.