I have appreciated stock; how can I make a gift to Princeton and continue to receive an income?
A charitable remainder trust (CRT) allows you to donate property or assets while continuing to receive payments based on those assets.
How it works:
- You place a gift of at least $100,000 into a trust with Princeton as trustee.
- The trust pays a percentage of the trust’s principal to the beneficiary you name for life, or a specified term.
- When the trust ends, the remainder becomes a gift to Princeton.
CRTs come in two varieties:
Charitable remainder unitrust: offers payments that vary from year to year with investment performance.
Charitable remainder annuity trust: offers fixed payments based on the initial trust value.
Past performance is no guarantee of future results.
- Payments may be higher than stock dividends
- Donors can add to a unitrust at any time
- Capital gains taxes on the sale of appreciated stock are reduced and deferred
- 30% to 70% charitable deduction on federal income tax
- Assets are removed from the donor’s taxable estate*
- When the trust is managed by Princeton, it is invested in a diversified portfolio of equities and fixed-income products
- The remainder of your gift will support Princeton and can be designated for a specific purpose
- Contributions paid in full by June 30 of your major Reunion year (50th or higher) can count toward your Annual Giving donation through the AG Legacy program
- Recognition as a member of the 1746 Society
*Certain IRS limitations apply, and taxable estate is reduced only when the donor is also the designee.
The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.
Information for Estate Attorneys and Administrators
Our legal name is: Trustees of Princeton University
Our tax ID number is: 21-0634501
Our address and contact information for estates and trusts is:
Office of the General Counsel
New South Building, Fourth Floor
Princeton, NJ 08544
To cover the costs of investment management, program administration, tax preparation, and legal work, Princeton charges an annual fee in the range of 0.60% to 0.65%; these fees are not deducted from the beneficiary payments. The actual fee depends on the type of life income gift and the account value.