Charitable Remainder Trust

A charitable remainder trust begins with an irrevocable gift of assets into a charitable trust that provides you a fixed or variable income for life or for a set term. At the trust's termination, the trust assets become a generous gift to First Presbyterian Church Stillwater.

Benefits for you:

• Income: Payments are distributed for life or a fixed period to you or to whomever you designate.
• Tax Deductions: You may be eligible for a tax deduction in the year the trust is established.
• Capital Gains: You may avoid up-front capital gains tax.
• Estate Tax: Trust assets are not a part of your estate.

Types of Charitable Remainder Trusts



• Unitrust: The unitrust's income varies annually. At the establishment of the trust, a reasonable and permissible income percentage rate is determined. Annually, the trust assets are valued, and the established rate is applied to the annual value to determine your income. As the trust assets increase or decrease, your income increases or decreases as well. It may be possible to make additional contributions to the trust.

• Annuity Trust: The income is predictable and fixed. When you establish the trust, you set a reasonable and permissible fixed annual income based on a percentage of at least 5% of the initial market value of the trust's assets. Even as the value of the trust fluctuates, your income remains the same - except in the very unlikely and uncommon event that the trust assets are exhausted. Additional contributions to the trust are not permitted.