Charitable Remainder Trusts

Charitable remainder trusts are irrevocable trusts you create by designating a person or persons to receive annual income payments. At the conclusion of the life of the beneficiary, the principal of the trust goes to Catlin Gabel. Typically, the minimum to establish a trust is $100,000.

There are two different types of charitable remainder trusts:

• A charitable remainder unitrust is a trust in which the School invests the unitrust's assets and pays a fixed percentage of at least five percent of the unitrust's principal, valued annually, to the beneficiaries specified by the donor. The amount of the unitrust's value will vary depending on the investment performance of the market, and payments to the beneficiaries will rise with the increased value of the trust or may decrease if the value of the trust decreases. Once the trust is established, donors may make additional contributions to the trust.
• A charitable remainder annuity trust is a trust in which the School invests the trusts assets and pays a fixed amount each year to the income beneficiaries specified by the donor. The annual payment is calculated by applying a fixed percentage to the initial value of the trust - that same dollar amount will be paid to the beneficiaries each year regardless of performance. Donors cannot make additional contributions to annuity trusts.

For more information about charitable remainder trusts, please contact: