Planned Giving: Charitable Remainder Unitrust

Support for charity – tax savings, charitable deductions, and income for you

A charitable remainder unitrust for The Fuller Center for Housing through Mennonite Foundation is an ideal way to turn your assets like real estate and securities into a cash gift without losing much of your gain to taxes – and support your favorite charities at the same time. It is a particularly good gift plan option for making a donation of an asset that may take some time to sell.

Advantages

  • Receive lifetime income.
  • Get an immediate tax deduction.
  • Avoid capital gains tax.
  • Minimize estate taxes.

How it works

Before you arrange a sale of your securities or real estate, you make a gift of the actual asset to Mennonite Foundation for the benefit of The Fuller Center. You may give the entire asset or any percentage. The foundation finds a buyer for your gift asset and converts it to cash. We then provide you with income from your gift for the rest of your life as long as the trust generates income.

You benefit substantially with an immediate tax deduction, plus you avoid income tax on the amount your asset has increased in value since you purchased it, unless the Alternative Minimum Tax is involved. And you get the satisfaction of knowing the charities you choose will benefit from your generosity.

How to give a gift

Establishing a charitable remainder unitrust for the benefit of The Fuller Center through Mennonite Foundation is easy. Our experienced representatives can help you transfer your real estate or securities to Mennonite Foundation. We handle the sale of your gift asset. You can have your income from the trust divided among more than one person, and you can direct the even-tual distribution of the trust principal. Please keep in mind that gifts placed into a charitable remainder unitrust are irrevocable and cannot be withdrawn.

What The Fuller Center receives

We are delighted to receive funds through a charitable remainder unitrust. It ensures that we receive the gift you have designated. It also allows us to anticipate future donations and plan accordingly.

What you receive

Each year you receive payments based on an agreed-upon rate established when the trust is signed. The minimum payout rate is 5 percent and can be higher. In most cases, payments are made only when the trust earns income. As a general rule of thumb, we recommend the payout rate be no more than the decade of your age. For example, you might choose to be paid 5 percent if you are between the ages of 60 and 69; or 6 percent if you are between the ages of 70 and 79.

You also receive a charitable income tax deduction at the time you make the gift. Your exact deduction is based on your age and the payout rate of your unitrust.

QUESTIONS?

If you have questions or would like to talk more about planned giving programs, call Fuller Center headquarters at 229-924-2900.