Gift Planning
Charitable Remainder Annuity Trust

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A charitable remainder annuity trust (CRAT) may appeal to donors who want to make a gift now, but would like to receive fixed payments for life or for a specific number of years. CRATs are typically funded with cash or appreciated assets. The size of the payment is determined at the time the gift is made. Donors seeking a higher payout will receive a lower current tax deduction and vice versa (within certain limits).

Benefits of a charitable remainder annuity trust:

  • Receive an immediate income tax deduction for a portion of the gift.
  • Receive a fixed income for you and/or your loved ones for life or a number of years.
  • Establish a gift with as little as $100,000.
  • If your gift is funded with appreciated assets, you can also defer your capital gains liability.
  • Support the area of Duke most meaningful to you.
     
Some sample rates as of January 1, 2016
Two Beneficiaries One Beneficiary
Your Ages Payout Rate Deduction on $100,000 gift Your Age Payout Rate Deduction on $100,000 gift
75/75 5.0% $38,090 72 5.0% $46,098
80/80 6.0% $40,644 75 5.5% $48,219
85/85 6.5% $49,929 80 6.0% $55,746

Charitable remainder annuity trust v. charitable gift annuity 

If you are interested in making a gift that yields a fixed income, Duke’s Office of Gift Planning can help you explore how a charitable remainder annuity trust (CRAT) or a charitable gift annuity (CGA) might fit your particular situation.

In general, a charitable remainder annuity trust may provide a more favorable tax treatment than a CGA if you are using highly appreciated assets.

Charitable remainder annuity trusts may be invested with Duke’s endowment assets; however, the payout amount remains fixed. Annuity trust income is backed by all of the trust’s assets.