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.

Everyone has something they are passionate about. For me, Augsburg holds an important spot in my heart. It’s a cause that’s near and dear to me and my family. Augsburg’s core commitments and values remain true, to provide the finest education and to care for our neighbors so that together we might create a better future.  I am honored to serve on the Board of Regents and as Vice-Chair for Great Returns Campaign.

But, did you know that you can ensure your support of charities, like Augsburg, even after your lifetime while also receiving tax benefits for yourself?

You can—with a legacy gift to Augsburg University.

Here are some popular opportunities:

• Include a gift to us in your will or living trust.
  Your benefits: Retain control of your assets and have the flexibility to change your mind at any time. Read about the gift that Naomi ’81 and Steve Staruch have committed to Augsburg.
• Name Augsburg a beneficiary of your retirement account.
  Your benefit: These assets pass to Augsburg tax-free, allowing us to use the entire amount to support our mission. If passed to your loved ones, they would have to pay income tax when distributions are made from the account. Miriam Cox Peterson ’68 is creating a scholarship using distributions from her IRA. 
• Create a charitable trust.
  Your benefit: Take care of your family and give to your favorite charity in one instrument. Charitable trusts will be highlighted in the next blog post.

Need Help?

There are many ways you can ensure your support for Augsburg continues for years to come. Contact Amy Alkire at 651-323-4844 or alkirea@augsburg.edu today for help finding the perfect gift for you. You can also create your will for free using Augsburg’s online tool!

Pamela Moksnes ’79, Regent

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.