Charitable Remainder Trust
When you establish a charitable remainder trust, naming Vermont Law School as a remainder beneficiary, you can receive annual income for the rest of your life. Your trust can be structured so that you receive either a variable or a fixed amount, equal to five percent or more of the value of the trust. The law school will receive the balance remaining in the trust after your lifetime. In addition, you will receive an immediate charitable tax deduction for a portion of the value of the assets you use to establish the trust. Establishing a charitable remainder trust with assets such as highly appreciated securities can have the added benefit of reducing your capital gains tax, while providing more income to you.
For example, you might have purchased stock for $50,000 20 years ago that is worth $100,000 today, but pays only $1,500 (1.5 percent) each year in dividends. You can use that stock to establish a charitable remainder trust that will pay you a minimum of $5,000 (5 percent) annually. In addition, you will receive a current charitable income tax deduction (based on your age and other factors).
You should consult your attorney or tax advisor when establishing a charitable remainder trust.
For more information on how to make a lasting difference, please contact Matt Rizzo at email@example.com, 802-831-1206.