Charitable Remainder Trust
- You make a gift of cash, securities, or other appreciated property into a trust: a minimum of $100,000 for cash or securities and $250,000 net for real estate.
- The trust pays a fixed percentage of the value of the trust assets, re-valued annually, to you or to beneficiaries you name.
- When the trust terminates, the remainder passes to Berkeley to support the campus’s highest priorities or specific programs you designate.
- The minimum age of beneficiaries for all unitrusts is 60 at the time payment begins. The minimum age is not applicable for a Term of Years Trust.
- Retain an income stream from the gifted assets for you or loved ones.
- Receive an income tax charitable deduction at the time of the gift based on the full fair market value of the gifted assets, less the present value of the income stream. (We can provide sample deduction calculations.)
- Pay no capital gains tax at the time of gift.
- The trust can be for the lifetime(s) of the beneficiary or beneficiaries or for a term of years, depending on your circumstances.
- You have the option of making additional gifts to the trust over time.
- Highly appreciated assets with no or low yield can be used to create a higher yield and more diversification.
*For appreciated assets such as stocks/bonds and real estate held more than one year
NEW TAX LAW (SECURE ACT 2.0) EFFECTIVE JANUARY 1, 2023IRA qualified charitable distributions (QCDs) may be used to create a charitable remainder trust (subject to $100,000 gift minimum policy)
- Must be 70 ½ or older at time of transfer.
- Spouses who qualify may each elect to contribute up to $50,000 from their respective IRAs to create a charitable remainder trust.
- Election available only once in an IRA owner’s lifetime.
- QCD distributions cannot be added to an existing CRT.
- Only the IRA owner and/or his/her spouse may receive the payments from the trust.
- Distribution can satisfy all or part of the required minimum distribution (RMD).
- Donors are encouraged to consult with their advisors as there are additional limitations.
For more in-depth information, please call one of our experts at 510-642-6300.