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Charitable Remainder Annuity Trust
(Gift example*)
Example
A 72-year-old donor in the 35% tax bracket establishes an
annuity trust with $100,000 of appreciated stock, originally purchased for
$10,000. Trust pays donor 6.0% of the initial value as an annuity for life.
Trust earns an 8.0% average total return. Assume IRS discount rate of 5.6%.
Trust principal |
$100,000 |
Income tax deduction |
$49,698 |
Income tax savings (35%) |
$17,394 |
Cap. gains tax savings (15%) |
$13,500 |
Annual income |
$6,000 |
Projected after-tax benefit to donor |
$61,468 |
Projected benefit to Yale |
$148,430 |
PLEASE NOTE: These examples are for illustrative purposes
only and are not intended as legal or tax advice. Consult your own 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 1 (800) 445-6086 so that we can assist you through every step of the process.