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Charitable Remainder Unitrust

You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need!

Benefits of a charitable remainder unitrust

  • You or your loved ones will receive income for life, for a term of up to 20 years or life plus a term of up to 20 years.
  • You will avoid capital gains on the sale of your appreciated assets.
  • You will receive an immediate charitable income tax deduction for the charitable portion of the trust.
  • You can establish a future legacy gift to Carolina.

How it works

  1. You transfer cash or assets to fund a charitable remainder unitrust.
  2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
  3. The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value.
  4. You receive a charitable income tax deduction in the year you transfer assets to the trust.
  5. Carolina benefits from what remains in the trust after all the trust payments have been made.

*If you would like The University of North Carolina at Chapel Hill Foundation, Inc. to serve as trustee, the trust must abide by certain requirements. Please contact the Office of Gift Planning to learn about The University of North Carolina at Chapel Hill Foundation's trustee standards.

Is a charitable remainder unitrust a viable option for you? The Office of Gift Planning can help you think through the issues & your planning options. Please contact us for a free, confidential discussion. We would be happy to assist you and answer your questions.