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If you are looking to simplify your assets and get an income stream, you might consider a charitable remainder trust (CRT) (hover over to show flow chart of CRT). With this type of gift, you can free yourself from maintenance responsibilities on a rental or vacation home while receiving a regular income stream.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. Income may come in a fixed amount each year or a fixed percentage (starting at 5%) of the trust assets, revalued annually.
A charitable remainder trust can also be a solution in estate planning or business succession. For example, you can provide a portion of an inheritance to your heirs in an income stream rather than a lump sum. By partnering with UCR, you may save on trust administration costs.
You will get a charitable tax deduction and can minimize capital gains when funding with appreciated assets. At the end of the trust term, the remaining balance will come to UCR to support the purpose or program you designate.
Submit a few details and see how a charitable remainder trust can benefit you.
Legal Name: UC Riverside Foundation
Address: 900 University Ave., Riverside, CA 92521
Federal Tax ID Number: 23-7433570
The information on this website is not intended to serve as legal or tax advice. Please consult an attorney or tax advisor for such advice. Figures cited in examples are for illustration only; rates are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes and state law may impact your results.
A charitable bequest is one or two sentences in your will or living trust that leave to UC Riverside a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.
an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan
“I give to the UC Riverside Foundation (tax ID #23-7433570), a California nonprofit corporation, [a dollar amount], [a specific property], or [all or a percentage (%) of the rest, residue, and remainder of my estate] to support the greatest needs of the campus at the discretion of the Chancellor.”
able to be changed or cancelled
A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.
cannot be changed or cancelled
tax on gifts generally paid by the person making the gift rather than the recipient
the original value of an asset, such as stock, before its appreciation or depreciation
the growth in value of an asset like stock or real estate since the original purchase
the price a willing buyer and willing seller can agree on
The person receiving the gift annuity payments.
the part of an estate left after debts, taxes and specific bequests have been paid
a written and properly witnessed legal change to a will
the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will
A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to UCR or other charities. You cannot direct the gifts.
An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.
Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.
Securities, real estate or any other property having a fair market value greater than its original purchase price.
Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.
You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to UCR as a lump sum.
You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to UCR as a lump sum.
A beneficiary designation clearly identifies how specific assets will be distributed after your death.