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Charitable Remainder Annuity Trust

A charitable remainder annuity trust (CRAT) is a powerful way to support Utah Valley University while achieving financial stability and tax advantages. You can fund the trust with cash, appreciated assets, or proceeds from a business sale. This is done ideally as part of your sale strategy to help avoid capital gains taxes.

The trust pays a fixed annual income for life or a set number of years, based on the value of the assets at the time the trust is funded. This makes it an excellent option if you're seeking a reliable income stream and want to reduce exposure to market volatility.

After the trust has fulfilled its payments, the remaining assets go to UVU, supporting student scholarships, faculty excellence, and transformative learning experiences. Your gift creates a lasting legacy that opens doors for future generations of UVU students.

Benefits of a charitable remainder annuity trust

Receive fixed income for life or for a term of up to 20 years, providing financial stability regardless of market fluctuations
Avoid capital gains tax by donating appreciated assets, such as stocks or real estate, directly to the trust before they are sold
Incorporate a business or property sale into your giving strategy by funding the trust before the sale closes, helping reduce your overall tax liability and maximizing charitable impact
Receive an immediate charitable income tax deduction for the charitable portion of your gift in the year the trust is funded
Plan confidently for retirement with predictable income and long-term financial benefits
Create a lasting legacy. After all trust payments are made, the remaining assets support Utah Valley University through scholarships, faculty support, and student-focused programs

How a charitable remainder annuity trust works

Avoid capital gains taxes on the sale of appreciated assets or business proceeds by incorporating a charitable remainder annuity trust (CRAT) into your sale strategy. By transferring assets to the trust before the sale is finalized, you can preserve more value, receive fixed income, and support UVU?s mission with the remainder.
If the trust is funded with appreciated assets, it can sell those assets without incurring capital gains taxes, preserving more value for income and charitable impact.
The trust is invested to provide fixed annual income to you or other beneficiaries, based on a lifetime, multiple lives, or a term of up to 20 years.
You receive an immediate charitable income tax deduction for the charitable portion of your gift in the year the assets are transferred.
After all trust payments have been made, the remaining assets go to Utah Valley University, supporting scholarships, faculty excellence, and innovative student programs, creating a lasting legacy that shapes the future of UVU students.

Looking for Financial Stability and a Way to Support UVU? A Charitable Remainder Annuity Trust May Be the Solution

If you're tired of the ups and downs of the stock market and want the security of fixed annual payments, a charitable remainder annuity trust (CRAT) can offer the stability you?re looking for. Your gift creates a lasting legacy while providing financial benefits today and peace of mind for the future.

Contact us

If you have any questions about charitable remainder annuity trusts, please contact us. We would be happy to assist you and answer any questions you might have.

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Calculate Benefits

The charitable annuity trust calculator generates a printable presentation that shows how you can receive high fixed payments with tax free sale plus charitable tax deduction.

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Number of Beneficiaries

One Two

Click the appropriate button for a presentation of one or two beneficiaries. Selecting one beneficiary will cause the second beneficiary and the associated name and birthdate fields to be hidden from view.

First Beneficiary

Enter the name of the person. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", "Sr.", etc. For the remainder unitrust the first person is the first income recipient or beneficiary of the agreement.

First beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the first beneficiary

Please enter a valid birthdate for the second beneficiary

Birth month of the first beneficiary is required

Birth day of the first beneficiary is required

Birth year of the first beneficiary is required

Second Beneficiary

Second beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the second beneficiary

Birth month of the second beneficiary is required

Birth day of the second beneficiary is required

Birth year of the second beneficiary is required

Income Tax Rate

Select the current federal income tax rate of the donor. This will be used to project possible income tax savings. If you are uncertain about the correct rate, you may choose one of the middle rates. For many people, this will be close to their actual income tax rate.

Property Value $

Please enter a valid property value

Property value is required

Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Cost Basis $

Please enter a valid cost basis

Cost basis is required

Enter the cost basis of the asset being used to fund the trust or annuity. If the asset is cash, the cost basis is equal to the gift amount. If it is appreciated property, the cost basis will most likely be the amount you originally paid for the property. The cost basis is used to determine the capital gains tax which will be bypassed as a result of selling the asset. If the cost basis is not known or cannot be proven, the IRS assumes the cost basis to be $0. If cash funds the gift annuity, enter the same value as "Value of Property."

Current Return

Current return is required

Enter the current return or yield of the asset(s) which will be used to fund the gift agreement. For example, if the trust will be funded with public-traded stock which is currently paying a dividend of 3%, the current return yield is, in turn, 3%. If the gift is funded with vacant land or a personal residence (assuming the property is not leased), the current return would be 0%.

Trust Payout

Trust payout is required

Payout must be between 5% and 50%

Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

Maximum Payout Rate For 5% Probability Test Under Revenue Ruling 77-454 is less than minimum required 5% payout. Trust not permitted with this duration.