Skip to Main Content Skip to Footer Toggle Navigation Menu

Charitable Remainder Unitrust

You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need.

How a Charitable Remainder Unitrust Works

  1. You transfer cash or assets to Macalester to fund a charitable remainder unitrust
  2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free
  3. The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years, or a life plus a term of up to 20 years
  4. You receive an income tax deduction in the year you transfer assets to the trust
  5. Macalester benefits from the remaining funds in the trust after your lifetime or after all payments have been made
A three-step flowchart labeled "DONOR," "CHARITABLE REMAINDER UNITRUST," and "REMAINDER TO MACALESTER." It shows an orange donor figure transferring a "GIFT OF ASSETS" to a unitrust icon in exchange for a "TAX DEDUCTION" and "VARIABLE PAYMENTS." A final arrow points to the Macalester College shield logo.

Image Description: The diagram uses navy blue and orange icons with numbered steps to map the process. An orange figure with a heart is labeled DONOR, while an orange document icon is labeled CHARITABLE REMAINDER UNITRUST. A navy blue curved arrow (Step 1: GIFT OF ASSETS) connects the donor to the unitrust, while a returning arrow (Step 2: TAX DEDUCTION / VARIABLE PAYMENTS) completes the loop. A final straight arrow (Step 3: REMAINDER TO MACALESTER) points right toward the college’s navy blue shield logo.

Benefits of a Charitable Remainder Unitrust

  • Receive income for life, for a term of up to 20 years
  • Avoid capital gains on the sale of your appreciated assets
  • Receive an immediate charitable income tax deduction for the charitable portion of the trust
  • Establish a future legacy gift to Macalester