Charitable Remainder Trusts

Rebecca Armstrong“My gift both provides a source of financial security in retirement and the satisfaction of ‘paying it forward’ in gratitude for the positive impact that Princeton has had on my life.”

— Rebecca Wilson Armstrong ’74

With a charitable remainder trust, a donor transfers assets to Princeton, as trustee.  The University then makes quarterly payments, based on a percentage of the trust’s principal, to the donor and/or others for life or for a specified period.  When the trust terminates, Princeton receives what remains — the “charitable remainder” — of the trust assets.  A charitable remainder annuity trust (CRAT) offers fixed payments based on initial trust value.  

Past performance is no guarantee of future results.

A minimum gift of $100,000 is required to establish a charitable remainder trust at Princeton.


Benefits

  • Capital gains taxes on the sale of appreciated stock are reduced and deferred
  • The income tax charitable deduction ranges from 30% to 70% of the gift amount depending on the beneficiaries’ ages and the payout rate
  • The assets are removed from the donor’s taxable estate unless the donor names beneficiaries other than the donor and donor’s spouse
  • When the charitable remainder trust is managed by Princeton, the trust is invested in a diversified portfolio of equities and fixed-income products

The information presented on these web pages is not offered as legal or tax advice.  Please consult with your tax advisor, attorney, and/or financial planner to make certain any gift you are considering fits well in your specific circumstances.


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