“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.
- 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