A Wonderful Way to Provide for Family and Augsburg

Whether you’re looking to supplement your income or concerned about outliving your assets in retirement, you’re not alone. Many Augsburg donors who feel the same way find that a life income plan is an attractive alternative. One such plan, a charitable remainder trust, allows you to receive an income stream, with a tax deduction when funded, in addition to supporting a charitable organization like Augsburg at the end of the trust.

With this type of gift, you, or other beneficiaries if you choose, receive regular income for life (or for a period of up to 20 years). At the end of the trust term, the balance in the trust supports Augsburg’s mission. Another benefit of a trust is that you may gain freedom from investment management.

You can fund a charitable trust with cash, but by funding your trust with long-term appreciated assets, you receive a number of additional benefits.
• You eliminate up-front capital gains tax.
• You may also increase your lifetime income as compared to the yield on the contributed assets.

Two Choices

There are two types of trusts that work this way: charitable remainder annuity trusts and charitable remainder unitrusts. While both trusts allow you to receive an income tax charitable deduction, there are small, but important differences.

Charitable Remainder Annuity Trust
• You receive a regular, fixed-dollar income based on a percentage of the trust’s initial assets.
• You may not make additional contributions to the trust.

Charitable Remainder Unitrust
• You receive a regular, variable-dollar income (the amount you receive is a set percentage of the current value of the unitrust, redetermined annually).
• You may make additional contributions to the trust.

Involve the Experts

Set up a time to meet with your estate planning attorney. He or she can help you ensure that your charitable remainder trust is properly set up to achieve your personal financial and philanthropic goals.

See What a Trust Can Do

We’d love to discuss how your generosity will be put toward our mission. We can partner with you and your estate planning attorney as you take the next steps. Simply contact Amy Alkire at 651-323-4844 or alkirea@augsburg.edu for a no-obligation consultation.

The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.