Giving
through a Charitable
Remainder Trust allows you to
receive income
for the rest of
your life, knowing
that whatever
remains will benefit
your community.
How
it works
• You
transfer cash,
appreciated stocks,
real estate, or
other assets into
a trust.
• You
receive an immediate
charitable tax
deduction for
the charitable
portion of your
trust.
• The
trust pays you
or a beneficiary
you designate
regular income
payments.
• Upon
the beneficiary’s
death or after
a defined period
of years, the
remaining assets
in the trust transfer
to the Del Mar
Foundation. • Your
gift is recognized
in the Legacy
Society in your
name, in the name
of your family
or business, or
in honor of any
person or organization
you choose.
• We
handle all the
administrative
details after
the gift is established.
• Your
gift can be placed
into an endowment
that is invested
over time. Earnings
from your gift
are used to make
grants addressing
community needs.
Your gift—and
all future earnings
from your gift—is
a permanent source
of community capital,
helping to do
good work forever.
More
benefits
You
may choose to
receive a fixed
income or one
that changes with
market conditions— income
from the Charitable
Remainder Trust
you establish
may add up to
more than the
interest and dividends
you earned from
holding the assets.
You can use it
to supplement
your own lifestyle
or that of someone
other than yourself:
a sibling, a dependent
parent, a friend,
or a former employee.
A
portion of
the income may
be a tax-free
return of principal,
while some
is taxed as
ordinary
income or capital
gains. The amount
of income received
depends on the
payout
rate selected
by the donor.
The tax deduction
allowed depends
on the age of
the
recipient, the
payout rate,
and the discount
rate (as determined
by the Internal
Revenue Service).
You
can pick one
of these options
for your Charitable
Remainder Trust:
• Annuity
trust pays you
a fixed dollar
amount.
• Standard
unitrust pays
you an amount
equal to a fixed
percentage of
the net fair market
of the trust and
is recalculated
annually.
• Net
income unitrust
pays you the lesser
of the fixed percentage
specified by the
trust agreement
or actual trust
income; some net
income unitrusts
allow you to make
up deficiencies
in past years.
• Flip
unitrust is a
net income unitrust
that converts
to a standard |
 |
A
gift that pays
John
Hill
was
retired
and
in
his late seventies.
The stocks
he owned had
high market
values, but
they paid limited
dividends.
In addition
to
increasing
his personal
income, John
was interested
in giving
to
the community
in which he
had lived his
entire life,
so he decided
to transfer
the securities
to a Charitable
Remainder Trust
that eventually
would create
a gift with
the Del Mar
Foundation. “The
income I receive
from the trust
is more than
what I was collecting
in annual dividends—by
thousands
of
dollars. If
I would have
sold the stocks,
I’d
have paid a
fortune in capital
gains tax,” says
John. John also
receives an
immediate charitable
deduction and
pays less tax
on the trust
distributions. “Plus,” he
says, “I
know that when
I pass, I’ve
done something
good.” In
time, the Hill
Family gift
will address
ever-changing
community needs.
This
is a donor scenario,
a realistic composite
of giving stories.
It is not an actual
Del Mar donor
story.
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charitable
remainder
trust