Charitable Remainder Annuity Trust

The annuity trust provides for payment of a fixed-dollar amount—annually or at more frequent intervals—to the designated beneficiary(ies).

The amount must equal at least 5% of the initial fair-market value of the trust. At the death of the last beneficiary, the trust principal is distributed to the University of Utah.

In addition to the income you will receive from the trust, you will also be entitled to a charitable income-tax deduction for the value of our remainder interest in the trust assets.

Gift Range: $100,000 or more

Example: Bill and Carol purchased growth stock for $20,000 ten years ago. It is now valued at $100,000, but the annual dividends are only $1,500. They are both 75, and they would like to increase their retirement income. To do this, they transfer the stock to a charitable remainder annuity trust with a 5% payout rate.

In the first year, they will receive a $5,000 payment—over three times the dividends they have been receiving—and they will continue to receive $5,000 each year for the rest of their lives. Moreover, they avoid tax on their profit in the stock and receive an income-tax deduction of about $37,000. In their 24% tax bracket, this saves them $8,880 in income taxes (24% of $37,000).

When the last beneficiary dies, the annuity trust assets will benefit the University of Utah.

More Information

Contact Us

Jessica Nelson, J.D.
Senior Director of Legacy Giving
801-585-5950
jessica.nelson@utah.edu

Tiffany Lopez, J.D.
Associate Director of Legacy Giving
801-585-0743
tiffany.lopez@utah.edu

 

Ann Morse, J.D.
Director of Legacy Giving, University of Utah Health
801-587-1183
ann.morse@hsc.utah.edu

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