Eastern Legacy Society
Charitable Trusts
There are 2 types of Charitable Remainder Trusts: Annuity Trusts and Unitrusts. Both allow you to make a significant impact on the future of EKU while providing income and other benefits to you and those you love. With a Charitable Remainder Trust, you transfer cash and/ or other assets to a trust and receive income back for your lifetime and that of other beneficiaries (if you choose).
This income can be a fixed dollar amount (Annuity Trust) or a fixed percentage of the trust (Unitrust) for a predetermined number of years, or for life. Upon the death of the last beneficiary, or completion of the term of years, the remaining value of the trust is distributed to the EKU Foundation for the purpose you selected.
An Annuity Trust pays a fixed, unchanging dollar amount (Annuity) to the donor or his/her named beneficiary (ies). Unlike the Unitrust, no additions can be made to the Annuity Trust once it is established. So, often individuals create more than one. The trust is valued once – when it is established- so you know what your guaranteed income will be each year.
A Unitrust pays you an amount equal to a fixed percentage of the net fair market value of the trust assets as recalculated yearly. Additions may be made to a Unitrust at any time. The major difference between this and the Annuity Trust is that the amount of income you receive from the Unitrust will fluctuate from year to year according to the investment performance. It also offers a hedge against future inflation since any income not paid out to you is added back to the trust principal. Payments the next year are based on a higher trust value.
Charitable Lead Trust
Charitable Lead Trusts: All too often estate and gift taxes erode the value of large estates, leaving minimal inheritance available for your heirs. A Charitable Lead Trust is an excellent way to increase an inheritance for your heirs while making a significant charitable gift to the EKU Foundation. With a Charitable Lead Trust, Eastern does not receive the remainder of the assets in the trust, but rather takes the lead and receives the income from the trust for your lifetime or a pre-established number of years. If structured properly, your beneficiary (usually your grandchildren) receives the remainder of the trust at the end of the term of years free of estate and gift taxes.
Bequest |
For questions or additional, Bill Melton |
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"Since Federal tax laws continue to change, donors are encouraged to contact the Office of Advancement or their financial advisor to clarify current regulations that might have a direct impact on Planned Gifts."
