Charitable Remainder Trusts
A Charitable Remainder Trust is a legal entity that receives, holds and invests assets, providing income to beneficiaries designated by the donor for life or a term of years. At the end of that time, the trust ceases to exist and the assets remaining in the trust are distributed to Sarah Lawrence.
As a donor, you have great flexibility in designing a charitable remainder trust. You determine the age and number of beneficiaries; you set the payment rate (the minimum is 5%) and other parameters. Charitable Remainder Trusts can be designed to make fixed (annuity) payments or variable (“unitrust”) payments. The value remaining in the trust at the end of the term or of the beneficiaries’ lives becomes your gift to Sarah Lawrence.
When a Charitable Remainder Trust is made irrevocable to Sara Lawrence, it can be credited to the College as a gift at full current value.
Cash, marketable securities or any other asset, income-producing or not, including real estate, can be used to establish a Charitable Remainder Trust. Most Charitable Remainder Trusts are created with a minimum of $100,000.
Your estate-planning or tax advisor would create your Charitable Remainder Trust with your own interests and needs in mind.
To learn more about Charitable Remainder Trusts, please contact Dorea Ferris, Director of Gift Planning, at (914) 395-2543 or firstname.lastname@example.org.
CCE Alumna Creates a Legacy with a Charitable Remainder Trust
Jean Chandler Miller CCE '88 and her husband, Lewis, are big believers in education. “When a person—whether young or older—receives a good education, he or she has been given the power to keep learning over a lifetime,” Jean says.
Jean’s gratitude toward Sarah Lawrence, especially CCE, for enriching her life and permitting her to continue her education, led her to find a way to give back. She was delighted to learn that Sarah Lawrence’s Office of Gift Planning would work with her to structure a gift to best meet her financial needs and philanthropic goals.
Jean and Lewis decided to use low-yield appreciated securities to create a Charitable Remainder Trust. Because the trust is a charitable entity, no capital gains tax liability was incurred when the trust was created. Today, Jean and Lewis benefit from the generous payments the trust provides. Eventually, the value of the trust will create The Lewis and Jean Chandler Miller CCE ’88 Endowed Scholarship at the Center for Continuing Education, giving future generations of deserving CCE students a life-changing education.