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 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.


Benefits

  • 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.
  • Assets are managed by some of the same highly skilled investment professionals who handle Princeton’s endowment in a diversified portfolio of stocks and bonds.

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.

Join the 1746 SocietyUse our online gift calculator  |  Request a gift illustration