Unitrusts- Giving to E&T

Life Income Plans - Unitrusts

Unitrusts A charitable remainder unitrust differs from an annuity trust by paying a fixed percentage--at least five percent--of the fair market value of the trust's assets each year, rather than a fixed sum. That means the income will fluctuate from year to year as the trust's value fluctuates, but because the long-term market pattern is usually one of growth, you can generally expect payments to increase over time. In this way a unitrust can be an effective hedge against inflation.

Choosing a lower percentage rate may actually increase your income over time, because it allows the principal to grow more quickly. As the principal increases, so will the amount of your payment. The difference can be significant. And the more the principal grows, of course, the larger the ultimate gift to the Purdue School of Engineering and Technology. be, and the more completely it fulfills your philanthropic goals. You may also make additional contributions to a unitrust.

Your charitable deduction depends on the fair market value of the initial assets you transfer, the payout percentage you choose, the number and ages of beneficiaries, and other such factors. As with an annuity trust, you effectively remove the funding assets from your estate, and you likewise avoid capital gains taxes.

Features & Benefits:

Opportunity to make a substantial gift to

Purdue School of Engineering and Technology while receiving life income

Variable percentage payout may protect against inflation as your trust's assets grow

Larger gift to the Purdue School of Engineering and Technology than might otherwise be possible

Professional asset management receive an attractive "real" rate of return on your assets

Can unlock appreciated assets for diversification or increased yield

Immediate tax deduction

Avoid capital gains taxes

Estate tax and probate savings