Charitable Remainder Trusts
If you are interesting in supporting Northwestern with a significant gift and receiving income for life, consider a charitable remainder trust. This gift arrangement enables you to make a gift to Northwestern and receive income payments for either your lifetime or a period of years. Charitable remainder trusts can be funded with cash, securities, and, in some cases, illiquid assets such as real estate.
Benefits of a charitable remainder trust include:
- A partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
In both cases, at the end of the trust, the remaining assets go to Northwestern.
Celebrate Your Love of Northwestern
As managing editor of the Daily Northwestern during World War II, James “Jim” R. Ward ’42, ’47 MS published articles that currently stand as an invaluable archive of this unique and important time in history. In 2002, Jim worked with staff members in the Office of Gift Planning at Northwestern to evaluate tax-efficient giving arrangements in which he might be able to honor his family and support the University. Ultimately, Jim opted to use his family’s house to establish a charitable remainder trust (CRT).
“I decided that establishing a CRT and designating the remainder to an endowed scholarship in my family’s name would be the best way to celebrate our shared love of Northwestern,” explains Jim. “At the same time, the trust is providing me with the benefit of a steady income stream for the remainder of my lifetime.”
Calculate Your Benefits
Submit a few details and see how a charitable remainder trust can benefit you.
- Contact Northwestern Gift Planning at 800-826-6709 or firstname.lastname@example.org to talk about supporting Northwestern by setting up a charitable remainder trust.
- Seek the advice of your financial or legal adviser.
- If you include Northwestern in your plans, please use Northwestern’s legal name and federal tax ID number.
Legal Name: Northwestern University
Address: 633 Clark Street, Evanston, Illinois 60208
Federal Tax ID Number: 36-2167817
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
This is not legal advice. Any prospective donor should seek the advice of a qualified estate and/or tax professional to determine the consequences of his or her gift.
Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association.