Charitable Remainder Trust
Solutions for Large Donations
If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. At the end of the trust term, the balance in the trust goes to Northern Illinois Food Bank.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
An Example of How It Works
Susan*, 75, wants to make a gift to Northern Illinois Food Bank but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $299,845** in the year she creates and funds the trust. This deduction saves Susan $95,950 in her 32% tax bracket.
*These examples are for illustrative purposes only, to maintain the privacy of our donors.
**Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Gina Gramarosso at 630-443-6910, ext. 130 or firstname.lastname@example.org to talk about supporting Northern Illinois Food Bank by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Northern Illinois Food Bank in your plans, please use our legal name and federal tax ID.
Legal Name: Northern Illinois Food Bank
Address: 273 Dearborn Court, Geneva, IL 60134
Federal Tax ID Number: 36-3203648
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
Calculate Your Benefits
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