“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 University, as trustee. Princeton then provides regular 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. A charitable remainder unitrust (CRUT) offers payments that vary according to investment performance from year to year.
Past performance is no guarantee of future results.
A minimum gift of $50,000 is required to establish a charitable remainder trust at Princeton.
- Capital gains taxes on the sale of highly appreciated stock are reduced or eliminated.
- Income tax deduction ranges from 30% to 70% of the gift amount (depending on the beneficiaries’ ages and the payout rate).
- Assets are removed from the donor’s taxable estate, unless beneficiaries other than the donor and donor’s spouse are involved.
- When the trust is managed by Princeton University, trusts are invested in a diversified portfolio of equities and fixed income.