Gift Planning at Yale

<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "//www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="//www.w3.org/1999/xhtml"> <head> <title> Gift Planning at Yale </title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8" /> <meta name="keywords" content="planned giving, gift planning, donations, charitable bargain sale, income tax deduction" /> <meta name="description" content="Give an asset that may help us more than it is helping you, such as a life insurance policy whose coverage your family no longer needs, or real estate such as a second home or a parcel of undeveloped land, or even a collection of books or artwork" /> <link href="css/anylink.css" type="text/css" rel="stylesheet" /> <link href="css/base.css" type="text/css" rel="stylesheet" /> <script src="js/toolbar.js" type="text/javascript"></script> <style type="text/css"> #vgnext { display: none; } #vgitgfy { display: none !important; } #vghowworks { width: 100%; } #vgbenefits { width: 100% } #giftdiag { float: left; margin-bottom: 20px; } #giftlogo { display: none; } .giftdiagram { float: left; } #charter td { padding: 7px; } .vgslide { display: none; } .vgcalclink { display: none !important; } .giftbullets { margin-right: 7px; float: left; clear: left; margin-bottom: 15px; } #vgrelatedlinks { display: none; } .subtext { clear: none !Important; } #vghowworks h2 { margin-top: 0px; } </style> <link href="css/twoColElsRtHdr.css" rel="stylesheet" type="text/css" />  <style type="text/css">  </style> </head> <body class="twoColElsRtHdr" > <div id="container"> <div id="header"> <h1>Giving to Yale</h1>  </div> <div id="sidebar1"> <h3>Related Links</h3> <p><a href="GIFTcharituni.php">Gift Illustration</a></p> <p><a href="GIFTcharituni2.php">Complete Gift Description</a></p> <p><a href="crtprogram.php">Yale's Trust Program</a></p> <p><a href="GIFTcharituni3.php">Is This Gift Right For You?</a></p> <p><a href="trusteeCRUT.php">Who Should Trustee?</a></p> <p><a href="crutEX.php">Gift Example</a></p> <div class="vgcalclink"> <p><a href="calc-crut.php">Calculate Your Benefits</a></p> </div> <p><a href="CRUTplanningtips.php">Additional Planning Tips</a></p> <p><a href="GIFTcharituni-faq.php">Frequently Asked Questions</a></p> <p><a href="mailto:development.plannedgiving@yale.edu">Contact Us</a></p> <div id="close"> <p> </p> <p><a href="javascript: self.close()" class="style1">Close Window</a><br /> <br /> </p> <div align="right" style="margin-bottom:5px; padding-left:10px; padding-top:7px; text-align:left;"> <a href="javascript:ts('body',1)"><img src="images/toolbar-inc.gif" style="margin-bottom:10px;" border="0" /></a> <a href="javascript:ts('body',-1)"><img src="images/toolbar-dec.gif" style="margin-bottom:10px;" border="0" /></a> <br /> <a href="?id=print" target="_blank"><img src="images/toolbar-print.gif" style="margin-right:20px;" border="0" /></a> <a href="javascript:mailpage();"><img src="images/toolbar-send.gif" border="0" /></a> </div>  </div> </div> <div id="mainContent"> <h1>Charitable Remainder Unitrust: FAQs</h1> <div id="vgsubqa"> <p><a href="javascript:swapLayers('slide1');"><img class="openhide" src="images/open.gif" border="0" alt="" />Who can serve as trustee of my unitrust?</a></p><div id="slide1" class="vgslide"><p>In working with your team of professional advisors, a number of choices are available as to who would be the best trustee for you. Please <a href="yourteam.php">contact us</a> to discuss this further.</p></div><p><a href="javascript:swapLayers('slide2');"><img class="openhide" src="images/open.gif" border="0" alt="" />How would the assets in my unitrust be invested?</a></p><div id="slide2" class="vgslide"> <p>If the assets in the trust are liquid such as cash or securities, typically a unitrust is invested in a balanced portfolio that is designed to produce both income and growth over the term of the trust. If the trust assets are primarily non-liquid assets such as real estate or personal property, the trust may be held for growth in capital appreciation rather than current income. At some later date, the non-liquid assets could be sold (avoiding capital gains taxes) to be re-invested to produce income for the income beneficiaries.</p> </div><p><a href="javascript:swapLayers('slide3');"><img class="openhide" src="images/open.gif" border="0" alt="" />Is it better to give cash or appreciated securities?</a></p><div id="slide3" class="vgslide"><p>Gifts of cash or appreciated property yield the same result for tax deduction purposes. However, gifts of appreciated property have the added value of avoiding capital gains taxes.</p></div> <p><a href="javascript:swapLayers('slide7');"><img class="openhide" src="images/open.gif" border="0" alt="" />How will income from my unitrust be taxed?</a></p> <div id="slide7" class="vgslide"><p>Your income will be taxed according to the type of investments and payout rate of the trust. You will usually pay tax at the ordinary income level on any ordinary income that is distributed, up to your full payment. The rest of your income will be taxed at the next lowest rate, usually as capital gains, then as tax-free return of principal. </p> </div> <p><a href="javascript:swapLayers('slide4');"><img class="openhide" src="images/open.gif" border="0" alt="" />Can I give real estate or other property to a unitrust?</a></p><div id="slide4" class="vgslide"><p>In most cases, yes. The value of the trust principal will be determined by a qualified appraisal of the property. However, real estate or other property may not be producing income and thus the income beneficiaries may receive no or very little income until these assets are sold and re-invested to produce income.</p></div><p><a href="javascript:swapLayers('slide5');"><img class="openhide" src="images/open.gif" border="0" alt="" />Can I include my children as income beneficiaries?</a></p><div id="slide5" class="vgslide"><p>It depends on the age(s) of any children you name as income beneficiaries. Our interest in the trust must be at least 10% of the value of the assets donated to the trust. This interest is calculated using the life expectancies of the income beneficiaries. Thus, the younger your children, the longer their life expectancy, and the smaller will be the charitable remainder value. Even younger adult children may disqualify the trust.</p></div><p><a href="javascript:swapLayers('slide6');"><img class="openhide" src="images/open.gif" border="0" alt="" />What are the tax deduction implications of my charitable remainder unitrust?</a></p><div id="slide6" class="vgslide"><p>A charitable remainder unitrust is a powerful tool that can save you income, capital gain, estate <em>and</em> inheritance taxes depending on your circumstances and state of domicile. A qualified advisor is crucial to assist you in maximizing these benefits.</p></div></div> <br> <div id="vgnext"> <h2>Next</h2> <ul> <li><a href="GIFTcharitg2.php" title="Tell Me More About Charitable Reminader Unitrusts">More detail</a> about charitable remainder unitrusts.</li> <li><a href="mailto:development.plannedgiving@yale.edu">Contact us</a> so we can assist you through every step.</li> </ul> </div> <br /><br /><br /> <br /> </div> <div id="footer"> <h5>Yale University Office of Planned Giving</h5> <p>PO Box 2038, New Haven, CT 06521 | 800.445.6086 | <a href="mailto:development.plannedgiving@yale.edu">Email us </a></p> </div> </div> </body> </html>  </body></html>

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Gift Planning at Yale