Charitable Remainder Unitrust

A charitable remainder unitrust is similar to a charitable remainder annuity trust except that instead of receiving an annual fixed payment, the trustee revalues the trust assets annually and pays out a fixed percentage of those assets. The percentage paid is at least 5% and is generally in the 5-7% range.

When the unitrust term ends, the unitrust's principal passes to the 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.

Any calculations or examples are for illustration purposes only and should not be considered legal, accounting, or other professional advice.

For more information, contact the Foundation.

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