Charitable Remainder Trust

Charitable Remainder Trust

A charitable remainder trust at Wagner College is funded with a minimum of $100,000.  You may establish your charitable trust independently with a trustee and qualified fiduciary institution of your choosing or through Wagner’s manager, the ELCA.  You and your beneficiaries receive income of at least 5 percent over your lifetime or for a specific number of years.

There are two types of charitable remainder trusts. A charitable remainder unitrust pays income equal to a fixed percentage of the value of the principal, which is revalued annually.  A charitable remainder annuity trust pays a fixed percentage that is agreed upon when you establish the trust.

You receive an income tax deduction based upon the value of the trust’s remainder interest -- the portion of the principal left after the income interest has been paid to the beneficiary or beneficiaries. Because the trust is tax exempt, you do not have to recognize capital gain at the time the trust is created or when appreciated assets are sold.  Furthermore, the trust can receive additional assets.