OUR INSTITUTES: CANCER | HEART | NEUROSCIENCE | ORTHOPAEDICS
 
 

CHOC Children's Publications
Share |
Printer Friendly
Securing the Future
Securing the Future is a bi-annual publication of the CHOC Foundation highlighting estate gifts. It features long-time donors and explains how their charitable gifts have supported the hospital through testamentary gifts, legacy planning, and retirement income planning.

How a Unitrust Works

A Unitrust can be reduced to three basic steps: (1) You create a unitrust with cash, securities or other property. (2) The trustee will pay you (and/or another beneficiary you name) an income for the rest of your life and that of any named beneficiaries, if you wish. (3) The trust?s remainder passes to the charitable organization(s) you name.

For example, Tom and Laura have stock they purchased for $10,000 many years ago. Now it?s worth $100,000, but it pays only a 2 percent dividend. If they sell the stock to reinvest in something that pays higher dividends, they will have to pay $13,500 in capital gains tax, which will leave them with only $86,500 to reinvest.

Instead, Tom and Laura give the stock to a unitrust designed to pay them 6 percent annually. They will receive $6,000 the first year. They are also allowed a $20,732 charitable deduction on their income tax return the first year.*

Because the trust is tax-exempt, the full $100,000 can be reinvested, undiminished by capital gains tax. After Tom and Laura?s lifetimes, their favorite charitable organization will receive the remainder of the trust assets. For Tom and Laura, this was the best way to make a charitable gift without giving up any income.

ASK US ABOUT YOUR SITUATION
We can provide calculations showing how a unitrust may work in your personal situation. Just call us at (714) 532-8690 for a no-obligation discussion.

* Assuming a 5.8 percent charitable federal midterm rate, quarterly payments and donors aged 60 and 56

CHOC CHILDREN'S PUBLICATIONS
PHYSICIAN CONNECTION ENEWSLETTER
KIDS HEALTH MAGAZINE
ANNUAL REPORT
spacer

Facebook  Twitter  Pinterest  Instagram  Foursquare  LinkedIn  YouTube  RSS  CHOC Blog

US News     CAPE Award   Magnet      Beacon Award      Most Trusted Brand     Leapfrog

chocChildren's Hospital of Orange County | UCI University of California, Irvine

Children's Hospital of Orange County is affiliated with UC Irvine Healthcare and UC Irvine School of Medicine

CHOC Children's - 1201 W La Veta Ave, Orange, CA. Phone: 714-997-3000. .