The Art Institute of Chicago
Gift Planning

Charitable Remainder Annuity Trusts

A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, your spouse, and/or other beneficiaries a fixed annuity income for life or a term of years. You receive a charitable income tax deduction for a portion of your gift to the trust. No additional gifts are permitted. After the annuity trust terminates, the accumulated principal or "remainder interest" goes to the Art Institute of Chicago.

  • Receive stable, predictable income (particularly appealing to older donors and income beneficiaries).
  • Avoid all upfront capital-gains tax on any appreciated assets you transfer to the annuity trust.
  • Receive all or partly tax-free income if your annuity trust is invested for that objective.
  • Reduce your estate-tax liability by removing a large taxable asset.
  • Make a satisfying and substantial gift to the Art Institute of Chicago during your lifetime.

Example

Comparison of Benefits: Unitrust and Annuity Trust

This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.

Assumptions:

> Beneficiaries aged 72 and 70
> 28% income tax bracket
> Holding $100,000 in stock with $50,000 cost basis

.

Unitrust

Annuity Trust

Contribution

$100,000

$100,000

Income Rate

5%

5%

First Year's Income

$5,000

$5,000

Future Income

Variable

$5,000/year

Charitable Deduction*

$43,764

$43,367

*Based on a federal discount rate of 5%.

More

To learn more about charitable remainder annuity trusts, e-mail us, complete the information request form, or call us at (312) 499-4110 so that we can assist you.




The Art Institute of Chicago
111 South Michigan Ave
Chicago, IL 60603
(312) 499-4110 | Fax: (312) 499-4104




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