The Threefold Benefits of a Trust

Let's say you are 74 and want to use a charitable remainder annuity trust to help a grandchild with college expenses. With a charitable remainder annuity trust, you receive a fixed percentage each year of the initial value of the trust for the rest of your life. After your lifetime, we receive the remaining balance in the trust.

• You give $150,000 in cash or marketable securities to the trust you create.
• Based on your chosen payout rate of 5.5 percent, the trust makes fixed annual payments of $8,250 to you, typically for your lifetime.
• You make a gift to a grandchild from your payment, to help with tuition.
• The $8,250 payment is below the gift tax annual exclusion of $13,000, so the gift is gift tax–free.
• When the trust terminates upon your death, the remainder passes to St. John's University to be used as you have directed.

Your Benefits

• Receive income for life or a term of up to 20 years.
• Receive an immediate income tax deduction for a portion of your charitable gift. In this case, the charitable deduction is $75,657.*
• Pay no upfront capital gains tax if you donate appreciated assets to the trust.
• Meet your personal objective of helping a grandchild with tuition payments.
• Provide valuable support for our mission.

Contact Susan Damiani at 718-990-7562 or damianis@stjohns.edu to learn more about charitable remainder trusts or other ways you can benefit you, your family and St. John's.

*Based on annual payments and a 3.4 percent charitable midterm federal rate