Charitable Remainder Unitrust A unitrust allows you to make a significant contribution to the University's future while retaining a life income for you and/or your designees.
Under this plan, the University can be designated the trustee of your gift and can manage the trust at no cost to you. Washington University then pays you an annual income based on a fixed percentage of the fair market value of the trust assets as valued annually. You and the University determine the fixed percentage when developing the plan. You may also add to your unitrust at any time. The minimum gift is $50,000--$5,000 for additions--and the minimum age for a designee is 60. Donors are eligible for a charitable deduction on their income tax for a portion of the value of their contribution.
Many donors use a Charitable Remainder Unitrust to increase income from highly appreciated securities that have little or no yield without reducing the value of the assets by paying tax on the value of the capital gain.
If you use long-term appreciated property to fund the trust, you avoid capital gain tax liability on the transaction. The designees' income will be taxed at ordinary and capital gain rates with some income possibly being tax free. Bear in mind that because the income payments are tied to the changing value of the uni-trust, your payments may vary.
Consult the Office of Planned Giving and your advisers about the benefits of putting real estate into a unitrust, which many donors find increases their income flow from the property.
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