Charitable Remainder Trust
Essentially, a donor transfers cash, stock, or other property to a trust established under certain federal guidelines. You need an attorney to work with you on this type of gift. The trustee (a person or organization named by the donor) invests, manages, and distributes the assets according to the terms of the trust document. At the end of the trust period, the remaining assets are distributed to the Georgia Tech Foundation.
There are two basic types of charitable remainder trusts:
Charitable Remainder Annuity Trust
- This trust pays a fixed dollar amount annually to the beneficiaries based on a percentage of the trust's initial value—at least 5 percent of the initial fair-market value of the trust.
- This trust is a good choice for those who want to make a gift that furnishes a predictable income each year.
Charitable Remainder Unitrust
- This trust provides yearly fluctuating income to the donor or other beneficiaries for a term of years or life, based on a fixed percentage of the trust principal. Annual payments must be at least 5 percent of the value of the trust as it is valued each year.
- Trust assets are revalued annually, allowing potential growth in income to the beneficiaries.
- Additional contributions can be made to this trust.
With either type of charitable remainder trust, an income-tax deduction is allowed for the present value of the Georgia Tech Foundation's or Alexander-Tharpe Fund's remainder interest in the trust.
When funded with real estate, a charitable remainder unitrust can turn non-income-producing property into an income stream for one or more beneficiaries and then offer support to Georgia Tech. There are numerous benefits to this type of trust arrangement. We would be happy to discuss this opportunity with you and your advisors.
Kaspick & Company
Kaspick & Company specializes in planned-gift asset management and administration. Kaspick & Company manages all charitable gift annuities funded with the Georgia Tech Foundation and all trusts of which the Foundation is named trustee.
Kaspick & Company has detailed information on trusts, including investment allocation, funding assets, how to choose a trustee, and much more. Click here to learn more about management of planned gifts by the Georgia Tech Foundation.