If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. At the end of the trust term, the balance in the trust goes to Orange County United Way.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.Watch How It Works
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An Example of How It Works
Susan, 75, wants to make a gift to United Way but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $301,905* in the year she creates and funds the trust. This deduction saves Susan $96,610 in her 32% tax bracket.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Mike Olson at 949.263.6127 or MikeO@UnitedWayOC.org to talk about supporting United Way by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include United Way in your plans, please use our legal name and federal tax ID.
Legal Name: Orange County's United Way
Address: 18012 Mitchell South, Irvine, CA 92614
Federal Tax ID Number: 33-0047994