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PARKS &
WILDLIFE
FOUNDATION Phone:
605-773-4503
About the Foundation |
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CHARITABLE REMAINDER UNITRUST
A charitable remainder unitrust ("unitrust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life or a term of years while making a generous gift to SD Parks and Wildlife Foundation.
As a unitrust donor, you irrevocably transfer assets, usually cash, securities, or real estate, to a trustee of your choice (for example, SD Parks and Wildlife Foundation or a bank trust department). During the unitrust's term, the trustee invests the unitrust's assets. Each year, the trustee pays a fixed percentage of the unitrust's value, as revalued annually, to one or more income beneficiaries named by you. Payments must be at least 5% of the trust's annual value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly.
When the unitrust term ends, the unitrust's principal passes to SD Parks and Wildlife Foundation, to be used for the purpose you designate.
EXAMPLE:
If you irrevocably transfer $50,000 in cash to a unitrust that pays 5% of its value each year for the lifetime benefit of an individual, age 72,
BENEFITS INCLUDE:
1) You will qualify for a federal income tax deduction of approximately $28,246. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind over the next five years, subject to the same 50% limitation.
2) Your designated income beneficiary will receive payments in quarterly installments for life. In the first year, these payments will be approximately $2,500. Payments in future years will vary with the value of the unitrust.
3) Your estate may enjoy reduced probate costs and estate taxes.
4) You will provide generous support of SD Parks and Wildlife Foundation.
5) Your gift will benefit from expert asset management, provided by the same professionals who manage SD Parks and Wildlife Foundation's endowment.
November 26, 2002
hese calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift.T
For more information see our Policy Manual.