Support
Utah Valley University
in a Meaningful Way

Meet your personal financial goals while making a difference for our future

Overview Booklet Calculator

Sale and Unitrust

Turn Appreciated Assets Into Income and Opportunity for UVU Students

If you own appreciated assets such as stocks, bonds, real estate, or a business that produces little or no income, selling them outright could result in a significant capital gains tax. A sale and charitable remainder unitrust (CRUT) offers a smart, tax-efficient solution that benefits both you and Utah Valley University.

By incorporating a CRUT into your sale strategy, you can:

Sell your appreciated assets tax-efficiently by donating a portion to the trust before the sale
Receive cash from the sale, which you can use to purchase another residence, save for retirement, travel, meet daily needs, or achieve other financial goals
Receive variable income for life or a set term, based on a percentage of the trust's annually revalued assets, helping you plan confidently for retirement
Avoid immediate capital gains tax on the donated portion of the assets
Obtain an immediate charitable income tax deduction, which may reduce your tax bill in the year the trust is funded
Further the mission of Utah Valley University after the trust has fulfilled its payments, the remaining assets support scholarships, faculty excellence, and transformative student programs

How a sale and unitrust works

You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
The assets are then sold by the trustee. You receive cash from the sale and the rest of the sale's proceeds are paid to the charitable unitrust.
The trust will provide you with income for the rest of your life.
You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.

Considering a Gift of Your Home to Fund a Unitrust? Here's What You Should Know

If you're thinking about using a portion of your primary residence to fund a charitable remainder unitrust (CRUT), you may be able to take advantage of the one-time home sale exclusion to reduce or even eliminate capital gains taxes that would normally apply.

However, it's important to note that once the property is transferred to the trust, you can no longer live in the residence. This strategy works best if you're planning to move or sell anyway.

A qualified tax advisor can help you determine whether this approach fits your financial goals and charitable plans.

Your gift can provide income for you and make a lasting impact on UVU students through life-changing scholarships, advancing academic excellence by funding faculty positions, and fueling hands-on learning opportunities and programs that prepare students for real-world success.

Contact us

If you have any questions about a sale and unitrust, please contact us. We would be happy to assist you and answer any questions you might have.

Booklet

Download Booklet

Calculate Benefits

The sale and unitrust calculator generates a printable presentation that shows how you can receive cash plus increased income from trust. Charitable tax deduction reduces tax on gain.

* Required fields

Help content opened below

Number of Beneficiaries

One Two

Click the appropriate button for a presentation of one or two beneficiaries. Selecting one beneficiary will cause the second beneficiary and the associated name and birthdate fields to be hidden from view.

First Beneficiary

Enter the name of the person. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", "Sr.", etc. For the remainder unitrust the first person is the first income recipient or beneficiary of the agreement.

First beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the first beneficiary

Birth month of the first beneficiary is required

Birth day of the first beneficiary is required

Birth year of the first beneficiary is required

Second Beneficiary

Second beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the second beneficiary

Birth month of the second beneficiary is required

Birth day of the second beneficiary is required

Birth year of the second beneficiary is required

Income Tax Rate

Select the current federal income tax rate of the donor. This will be used to project possible income tax savings. If you are uncertain about the correct rate, you may choose one of the middle rates. For many people, this will be close to their actual income tax rate.

Property Value $

Please enter a valid property value

Property value is required

Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Cost Basis $

Please enter a valid cost basis

Cost basis is required

Enter the cost basis of the asset being used to fund the trust or annuity. If the asset is cash, the cost basis is equal to the gift amount. If it is appreciated property, the cost basis will most likely be the amount you originally paid for the property. The cost basis is used to determine the capital gains tax which will be bypassed as a result of selling the asset. If the cost basis is not known or cannot be proven, the IRS assumes the cost basis to be $0. If cash funds the gift annuity, enter the same value as "Value of Property."

Current Return

Current return percentage is required

Enter the current return or yield of the asset(s) which will be used to fund the gift agreement. For example, if the trust will be funded with public-traded stock which is currently paying a dividend of 3%, the current return yield is, in turn, 3%. If the gift is funded with vacant land or a personal residence (assuming the property is not leased), the current return would be 0%.

Trust Payout

Payout must be between 5% and 50%

Payout percentage is required

Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.

Cash $

Please enter a valid cash amount

Cash amount is required

Enter the amount of cash you wish to receive from the sale of the asset(s) that will be used to fund the trust. This amount of cash will not go into the trust.

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

Post-submit calculation error message goes here

Processing

Support Utah Valley University in a Meaningful Way