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Charitable Remainder Unitrust

A charitable remainder unitrust (CRUT) is a powerful way to support Utah Valley University while also meeting your financial and philanthropic goals. By funding the trust with cash, securities, or other appreciated assets, you can receive income for life or a set term, along with potential tax advantages.

If you're concerned about the high cost of capital gains tax, a CRUT can help. By donating appreciated assets, such as stocks or real estate, or including the trust in your business sale strategy, you may be able to avoid immediate capital gains taxes, receive a charitable deduction, and create a stream of income for retirement or other future needs. For example, if you're planning to sell property or developing your business exit strategy and are looking for a way to reduce your tax burden, a CRUT could be the ideal solution.

After the trust has fulfilled its payments to you or your beneficiaries, the remaining assets go to UVU, helping fund scholarships, faculty support, and transformative student experiences. It's a meaningful way to create a legacy that benefits both you and future generations of Wolverines.

Benefits of a charitable remainder unitrust

Receive variable income for life or for a term of up to 20 years, based on a fixed percentage of the trust's annually revalued assets
Avoid capital gains tax by donating appreciated assets, such as stocks, real estate, or business interests, directly to the trust before they are sold
Use proceeds from a business or property sale to fund the trust as part of your sale strategy, helping reduce your overall tax liability and increase charitable impact
Receive an immediate charitable income tax deduction for the charitable portion of your gift in the year the trust is funded
Benefit from potential growth in income over time, as the trust assets are revalued annually and may increase in value
Create a lasting legacy. After all trust payments are made, the remaining assets support Utah Valley University through scholarships, faculty support, and student-focused programs

How a charitable remainder unitrust works

You can fund a charitable remainder unitrust (CRUT) by transferring cash, publicly traded securities, real estate, or proceeds from a business sale
In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years.
You receive an income tax deduction in the year you transfer assets to the trust.
Our organization benefits from what remains in the trust after all the trust payments have been made.

Other considerations

Charitable remainder unitrust for income. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value.
How to select the right unitrust payout. There are several unitrust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.

Contact us

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

Booklet

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Calculate Benefits

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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