You can establish a charitable remainder unitrust by irrevocably transferring assets to a trustee, who then invests the trust's assets and pays you and/or other beneficiaries an annual variable income. At the end of the trust term, the assets remaining in the trust are distributed to The Chester County Hospital Foundation for the purpose you designate.
A unitrust is an excellent vehicle for gifts of appreciated stock or property, because the trust is tax exempt and does not pay capital gains tax when it sells the assets. The full sales proceeds remain in the trust to provide a payout to the income beneficiaries. The amount of the payout for the income beneficiaries will depend on whether the charitable remainder unitrust is set up as a standard unitrust, net income unitrust, or flip unitrust. The payout distributed is generally taxable to the income beneficiaries. Upon establishing a charitable remainder unitrust, you are entitled to a current income tax deduction for a portion of the value of the gift transferred to the trust, which is often between 30 and 60 percent of the value of the assets transferred.
The material presented in this website is not offered as legal or tax advice. We urge you to seek the advice of your tax advisor, attorney and/or financial planner to make certain a contemplated gift fits well into your overall circumstances and planning.
For more information, please contact Colleen Becht-Foltz, Director of Development, at Colleen.Becht-Foltz@uphs.upenn.edu or by calling 610-431-5697.
Last Updated: 7/27/2016