Charitable Remainder Unitrusts
(Gift example*)
Example
A 55 year-old donor in the 35% tax bracket establishes a unitrust with $100,000 of appreciated stock, originally purchased for $10,000. Unitrust pays donor 5.0% of the trust assets re-valued annually for life. Trust earns a 8% average total return. Assume IRS discount rate of 3.2%.
Trust
principal |
$100,000 |
Income
tax deduction |
$33,469 |
Income
tax savings (35%) |
$11,714 |
Cap.
gains tax savings (15%) |
$13,500 |
Income
(Year 1) |
$5,000 |
Projected
after-tax benefit to income beneficiary |
$156,698 |
Projected
benefit to San Diego Symphony Foundation |
$228,793 |
PLEASE NOTE: This example is for illustrative purposes
only and is not intended as legal or tax advice. Consult your legal and tax
advisors prior to making any material decisions based on this data.
For more information
Email
us, complete the personal illustration form,
or call us at (619) 237-1964 so that we can assist
you through every step of the process.
San Diego Symphony Foundation
1245 Seventh Ave
San Diego, CA 92101
(619) 237-1964
