BHP | Planned Giving

Charitable Remainder Trusts

A charitable remainder trust is a separate tax-exempt account into which you transfer your gift to the Business Honors Program.

HOW IT WORKS

In a charitable remainder trust, a donor transfers assets to the University of Texas at Austin. The University, as trustee, then provides regular payments, based on a percentage of the trust’s principal, to the donor and/or others for life or a specified period. Later, the Business Honors Program receives what remains—the “charitable remainder”—of the trust assets.

Charitable Remainder TrustsBENEFITS

The following are some of the benefits that accrue from a charitable remainder trust. View the e-brochure for more details.

  • Capital gains taxes on the sale of highly appreciated stock are reduced or eliminated.
  • Significant income tax deduction depending on the beneficiaries' ages and the payout rate.
  • Assets are removed from the donor's taxable estate, unless beneficiaries other than the donor and donor’s spouse are involved.
  • Lifetime payments can be double or triple the amount of dividends paid by the stock used to make the gift.
  • Gifts of real estate can eliminate management headaches and reduce tax liabilities.
  • Assets are managed by some of the same highly skilled investment professionals who handle McCombs' endowment, in a diversified portfolio of stocks and bonds.

IS THIS GIFT RIGHT FOR YOU?

A charitable remainder trust has special appeal for UT Austin supporters who would like to make a gift and receive income in return. Review the checklists below to see if you fit the profile for either type of charitable remainder trust.


Annuity Trust
  • You would like more future income.
  • You want a fixed income you can count on.
  • You own low-yield assets that are worth more now than when you purchased them.
  • You want a higher current income without incurring up-front long-term capital gains taxes.
Unitrust
  • You would like more future income.
  • You want payments that hopefully keep up with inflation, and you don't mind if the payments vary from year to year.
  • You own low-yield assets that are worth more now than when you purchased them.
  • You want a higher current income without incurring up-front long-term capital gains taxes.
  • You like the idea that additional assets can be added to the trust during your lifetime.

MAKE A GIFT

For information on Charitable Remainder Trusts, contact Dianne Bangle in the McCombs School at (512) 475-8177.

Page last updated: 1/9/2013