If you have appreciated assets and are looking for a way to supplement your income, consider establishing a charitable remainder trust through KU Endowment.
When you create a charitable remainder trust, you irrevocably transfer money, securities or other assets to a trust that will then pay you an income for life, or for a period of years. Charitable trusts can be set up to pay either set annuities or variable amounts, depending on your goals and needs and those of KU Endowment.
Highly appreciated assets that generate low current income are ideal for funding charitable remainder trusts, because they can be sold and reinvested within the trust with no tax consequences. If you wish, the trust can also pay an income to another beneficiary of your choice. At the death of the last beneficiary, the principal remaining in the trust goes to KU Endowment.
You can establish a charitable remainder trust at KU Endowment with a gift of $100,000 or more. Charitable remainder trusts typically pay out between five and seven percent to the named beneficiaries for their lifetimes or a set number of years.
KU Endowment’s historic practice has been to serve as trustee of the donor’s assets without a fee. Charitable remainder trusts are legally required to be invested individually, not collectively with other funds. KU Endowment contracts with Kaspick & Company
for trust investment and management services.
Charitable trusts can be structured in a variety of ways to suit your particular situation. The Office of Planned Giving staff
is ready to consult with you and/or your adviser about establishing a charitable trust at KU Endowment, and to help with any questions about other forms of charitable giving that may benefit you, your family and the University of Kansas.
Summary of benefits:
The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.
Utilization of matured charitable remainder trusts will be deferred for a period of twelve months during which time the Association will earn interest income on the asset as a means of recovering expenses incurred in the marketing and administration of these gifts. At the end of the twelve-month period, the total value of the gift at maturity will be utilized in accordance with the donor's wishes.
- Satisfaction in supporting an area of KU that is important to you.
- Lifetime income (variable or fixed) for beneficiaries whom you designate.
- An immediate charitable income tax deduction.
- Avoidance of capital gains taxes on gifts of long-term appreciated property.
- Reduction in federal estate taxes.
- Membership in the Watkins Society or the Bell Legacy Society.