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Charitable Remainder Annuity Trust Charitable remainder annuity trusts are gift arrangements that enable you to contribute to NDSU, while providing an income for yourself and/or another beneficiary for life or a term of years. What type of income you can receive The annuity trust pays you, and/or your designated beneficiary, a fixed annual income, based on a percentage of the initial market value of the trust. Depending on the funding assets and investments, the trust may pay you tax-free income. How you can save taxes When you establish an annuity trust, you can receive an immediate federal income tax deduction for a portion of your gift. Cash gifts may be deducted up to 50 percent of your adjusted gross income; gifts of appreciated property may be deducted up to 30 percent of your adjusted gross income. Any excess deduction may be carried forward up to five additional years if necessary. With a gift of appreciated property, you can avoid the 10 percent to 20 percent capital gains tax. You also may realize significant estate tax savings. How to establish your own annuity trust A
Foundation managed annuity trust can be established with an irrevocable
gift valued at $50,000 or more. Typically, cash or publicly
traded stocks and bonds are used to fund an annuity trust. Income If you would like to receive more information about charitable remainder annuity trusts, please e-mail Scott Barrett or call us at 701-231-6837 or 1-800-279-8971. You can write to us at: |
