CHARITABLE REMAINDER uniTRUST
You can establish a charitable remainder unitrust that benefits Sun Valley Community School by irrevocably transferring assets—cash, securities, or other property— to a trustee who subsequently pays a percentage of the unitrust's value each year to you or another beneficiary. At the end of the trust term, the remaining assets go to Sun Valley Community School for a mission-aligned purpose which you designate.
Each year, you receive a fixed percentage of the unitrust's current value, as determined annually. If the unitrust gains in value, the annual payment will increase proportionally—providing a potential hedge against inflation. Likewise, if the unitrust's value decreases, the payment amount will go down. A unitrust provides more flexibility than many other life income plans and also offers important tax advantages.
POTENTIAL BENEFITS
- Provide a designated beneficiary with income
- Realize the possibility of income growth
- Eliminate capital gains tax on the transfer of appreciated assets
- Obtain an income tax charitable deduction
- Reduce estate taxes and probate costs
- Choose who administers your gift and invests its assets
- Support Sun Valley Community School

Example: Mr. Smith, age 68, transfers appreciated securities that cost him $100,000 and are now worth $500,000 to a unitrust with an annual payout rate of 6 percent. He is to receive payments for life. At the end of his lifetime, the unitrust assets will create a scholarship endowment at Sun Valley Community School. Mr. Smith's charitable deduction is about $236,800, and it can be used over six years. Under the provisions of the trust agreement, Mr. White's first annual payment will be $30,000, a significant portion of which may be taxed at the lower 15 percent capital gains tax rate. In year two, assuming an 8 percent total annual investment return, the trust will have a principal balance of $510,000, and the payment will be $30,600. Assuming the same 8 percent total return, the payment in year three will be about $31,200, and so on for life. Mr. Smith may also completely avoid the tax on the gain he would have incurred had he sold the property instead of donating it.
Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.