Charitable Remainder Trusts

Charitable Remainder Trusts are another way to make a gift to Vassar and receive income. These trusts offer greater flexibility than other arrangements. You can name yourself, yourself and your spouse, children, or other loved ones as the income beneficiaries. Often you can even name more than one remainder beneficiary. For instance, you may choose to have the remainder ultimately split between Vassar and another charity you hold dear. The kind of income that is paid out can be a fixed dollar amount (as with an annuity trust) or an amount that varies from year to year (as with a unitrust). These payments can be made for the beneficiary’s lifetime or for a term of years. Assets other than cash and securities (such as artwork or real estate) can also be used to fund a charitable remainder trust. You have the ability to select the trustee who will manage the trust and its investments. This may be Vassar, you, a bank, or other financial institution.

When Vassar serves as trustee, we utilize the professional investment management service of Kaspick and Company, the leading provider of gift planning services for Colleges and universities. To learn more about the services they provide you can visit their website at www.kaspick.com. The minimum gift required for a Charitable Remainder Trust managed by Vassar is generally $100,000. Currently, Vassar does not charge investment management fees for the trusts that it manages. The College absorbs the costs charged by Kaspick and does not pass them on to the individual trusts.

EXAMPLE

Donor, age 60 establishes a 5% charitable remainder unitrust with $100,000 appreciated securities.

Estimated Income 1st Year	$5,000 (varies each year)
Charitable Deduction **	$40,025
Capital Gains Tax	Avoided
Taxable Estate Reduction	$100,000
Estimated Total Income to Donor *	$172,132
Estimated Remainder to Vassar *	$203,379

Minimum gift amount at Vassar is $100,000.

*

Assumes 8% long-term average rate of return, trust lasts 24 years.

**

Deduction based on IRS discount rate which varies slightly month-to-month.

As you can see, with greater flexibility comes greater complexity. If you are interested in learning more about charitable remainder trusts and want to explore the possibilities of such a gift, we encourage you to contact us in the gift planning office. We can help you, working alongside your advisors, to structure a trust that will fit your particular situation. To request a personal gift illustration from the gift planning staff, please Alexas Orcutt with the Gift Planning Office at (845) 437-5487 or (800) 443-8196 or use our information request form. If you'd prefer to run some sample calculations yourself, please use the planned gift calculator.