These fixed payments continue for your life and the lives of your beneficiaries.
Any income earned by the trust that exceeds the annuity amount is added to the trust principal.
If trust earnings are insufficient to meet the annuity amount, principal will be used to make up the deficit. An annuity trust entitles you to a deduction in the year of the gift. A gift of long-term appreciated assets relieves you of capital gains tax on the sale of the assets. Upon the death of your surviving income beneficiary, the assets in the trust will pass on to the University. No additional contributions may be made to this type of trust.