Charitable Remainder Unitrust
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What is a Charitable Remainder Unitrust?
A Charitable Remainder Unitrust is a planned giving arrangement where a donor transfers assets into a trust that pays a variable income to the donor or other beneficiaries for life or a specified term, after which the remaining assets are distributed to Cure SMA.
- A Charitable Remainder Unitrust (CRUT) involves the transfer of assets, such as cash, securities, or real estate, into a trust that pays a variable income to the donor or other designated beneficiaries for life or a specified term.
- The income beneficiaries receive is a fixed percentage of the trust's fair market value, recalculated annually, providing the potential for income growth over time.
- Upon the termination of the trust, the remaining assets are distributed to one or more charitable organizations as specified in the trust agreement.
- Charitable Remainder Unitrusts offer donors flexibility and potential tax benefits while allowing them to support charitable causes during their lifetime.
Benefits from a Charitable Remainder Unitrust:
- Variable income stream: Donors or other beneficiaries receive a variable income stream based on the annual revaluation of the trust's assets, potentially allowing for income growth over time.
- Charitable income tax deduction: Donors may be eligible for a charitable income tax deduction for the present value of the remainder interest passing to Cure SMA, potentially reducing current taxable income.
- Capital gains tax savings: If funded with appreciated assets, donors can potentially avoid capital gains tax on the transfer of assets to the trust, maximizing the impact of their gift.
- Estate tax reduction: The value of the assets passing to Cure SMA upon the termination of the trust is removed from the donor's estate, potentially reducing estate taxes.
How your donation will benefit the SMA community
- Basic research to pave the way for new SMA muscle treatments and a cure
- SMA advocacy initiatives like caregiving access and transportation
- Improving standardized care for every person with SMA
“If it weren't for Cure SMA, we might not have the treatments in place that have helped my daughter to thrive while living with SMA. I'll forever be grateful and do what I can to support Cure SMA."
How a Charitable Remainder Unitrust Works
A donor transfers assets into a trust and selects one or more income beneficiaries to receive variable payments based on a fixed percentage of the trust's fair market value, recalculated annually. The income beneficiaries receive are payments for life or a specified term. Upon the termination of the trust, the remaining assets in the trust are distributed to Cure SMA as specified in the trust agreement.
Provides a variable income stream to the donor or other beneficiaries based on a fixed percentage of the trust's fair market value, recalculated annually.
The income beneficiaries receive is the lesser of the trust's actual income or a fixed percentage of the trust's fair market value, providing flexibility in income distributions.
Contact Us
If you have any questions, would like further information, or want help making your contribution, then please contact us at [email protected] to get started.
Legacy giving typically takes many conversations and is not a fit for everyone. Conversations with Cure SMA about planned giving should be considered general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting, or other professional advice. To determine how a gift or estate planning decision might affect your circumstances, it is expressly recommended that you consult an attorney, financial advisor, or other qualified professional.