Topics in This Section

Charitable Remainder Annuity Trusts

What is a charitable remainder annuity trust?

A Charitable Remainder Annuity Trust is a separately invested and managed charitable trust that pays you, your spouse, and/or other beneficiaries a fixed annuity income for life or a term of years. You receive a charitable income tax deduction for a portion of your gift to the trust. No additional gifts are permitted. After the annuity trust terminates, the accumulated principal or "remainder interest" goes to Fox Chase Cancer Center.

You receive stable, predictable income.
Depending on how your trust is invested, much of your income could be taxed at the capital gains rate of 15%.
Avoid ALL capital gains tax on any appreciated assets you transfer to the trust.
Reduced estate tax liability if your estate is at the taxable level.
Enjoy the satisfaction of making a deferred gift to Fox Chase Cancer Center during your lifetime.

Example

A 70-year-old donor in the 35% tax bracket establishes an annuity trust with $100,000 of appreciated stock, originally purchased for $10,000. Trust pays donor 6.0% of the initial value as an annuity for life. Trust earns an 8.0% average total return. Assume IRS discount rate of 5.8%.

Trust principal	$100,000
Income tax deduction	$47,168
Income tax savings (35%)	$16,589
Cap. gains tax savings (15%)	$13,500
Annual income	$6,000
Projected after-tax benefit to donor	$70,247
Projected benefit to Fox Chase Cancer Center	$160,649

PLEASE NOTE: These examples are for illustrative purposes only and are not intended as legal or tax advice. Consult your own legal and tax advisors prior to making any material decisions based on this data.

Is this gift for you? Click here.
Picture this gift. Click here.

To learn more about charitable remainder annuity trusts, Email us, complete the Personal Illustration Form, or call us at (215) 214-1507 or (215) 728-4740 so that we can assist you.