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Property Turns Into Income

Miranda lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Miranda found it increasingly difficult to care for her property.

Miranda's grandson often stopped by to help with chores around the house. On one visit, he sat down with her to explore the internet together. As a proud alumna of Utah Valley University (UVU), Miranda frequently visited the university's planned giving website, where she enjoyed reading weekly financial tips and inspiring stories about fellow alumni who were making a difference.

Miranda discovered a giving option that truly resonated with her: she could donate her home to UVU and, in return, receive income for life. After her lifetime, the remainder of her gift would go on to support student scholarships.

Miranda: "I called the gift planner at UVU and asked how a charitable remainder unitrust works. She explained that when I'm ready to move out of my home, I can transfer it to UVU and set up a special kind of trust. The trust would provide me with income for the rest of my life, and I'd receive a tax deduction for my gift."

Miranda had been thinking about downsizing to a condominium with less upkeep. Her financial advisor reviewed the plan and confirmed that the income from the charitable remainder trust would comfortably cover her living expenses.

Miranda: "After browsing real estate websites with my grandson, I found a nearby condo that was perfect for me. I called the gift planner at UVU and said I was ready to move forward."

Miranda was thrilled. She had found a way to turn her property into income to support her future needs, receive a charitable tax deduction, and make a lasting impact at UVU.

Giving back to the university that helped shape her life filled Miranda with pride. Through her thoughtful planning, she's now helping future Wolverines pursue their education, launch careers, and build better lives for their families.

What is a charitable remainder unitrust?

A charitable remainder unitrust is a trust that can be funded with your cash or other assets that provides you with income and tax benefits and supports the work of Utah Valley University with the remainder.

Is a gift of your home to fund a charitable trust right for you?

Your home has been one of your best assets, but after the kids move out and the house gets harder to care for, you may have other needs. Better than a reverse mortgage, a unitrust is one strategy to "downsize" your home, avoid capital gains tax and provide you with income.

If you have questions about how a unitrust could help you downsize, please contact us. We would be happy to answer questions that you might have.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to create a printable illustration of your benefits by using the calculator on this page.

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The charitable remainder unitrust calculator generates a printable presentation that shows how you can enjoy increased income with a tax-free sale plus benefit from charitable tax deduction.

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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.

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.

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Support Utah Valley University in a Meaningful Way

Property Turns Into Income

What is a charitable remainder unitrust?

Is a gift of your home to fund a charitable trust right for you?

Support
Utah Valley University
in a Meaningful Way