When the donor dies, the association keeps all remaining assets. The two types of remainder trusts are Unitrusts and Annuity Trusts. Under a basic Unitrust, the donor receives one or more yearly payments equaling a fixed percentage of the value of the asset, which is assessed each year. Under a net-income unitrust, the donor receives only the income earned by the trust, even if the trust earns less than the payout rate. By making Charitable Remainder Trusts, donors can get income tax deductions and escape capital gains taxes.
Many donors find the trusts an appealing way to prepare for retirement.
The assets can be invested to earn a lower rate of return when the donor is younger and then shifted to earn a higher rate of return, thus providing more income during the donor's later years. The gift will be acknowledged to the person being honored, or in the case of memorial gifts, to the family of the deceased. Money ordinarily spent for flowers or gifts to acknowledge important events in the lives of relatives and friends is instead channeled to the Annual Fund. Anniversaries, births, birthdays, graduations, weddings, promotions and get-well wishes are just a few occasions that can be acknowledged. Make A Gift .