Establishing a Unitrust

Overview:

Establishing a unitrust with Florida Christian College gives you an opportunity to make a gift to FCC, and at the same time receive annual payments from the donated assets (for a specific period of time). The annual payments vary because they are based on a percentage of the trusts fair market value. This unique feature of unitrusts give you an opportunity to protect the value of your investment against inflation, at the same time you are avoiding capital gains taxes and helping FCC.

Please email Bill Behrman or contact him at 407-569-1164 if you have further questions about setting up a unitrust with Florida Christian College .

A charitable remainder unitrust differs from an annuity trust by paying a fixed percentage —at least five percent—of the fair market value of the trust's assets each year, rather than a fixed sum . That means the income will fluctuate from year to year as the trust's value fluctuates, but because the long-term market pattern is usually one of growth, you can generally expect payments to increase over time. In this way a unitrust can be an effective hedge against inflation.

Choosing a lower percentage rate may actually increase your income over time, because it allows the principal to grow more quickly. As the principal increases, so will the amount of your payment. The difference can be significant. And the more the principal grows, of course, the larger the ultimate gift to Florida Christian College will be, and the more completely it fulfills your philanthropic goals. You may also make additional contributions to a unitrust over your lifetime.

The amount of your charitable deduction depends on:

•  the fair market value of the initial assets you transfer
•  the payout percentage you choose
•  the number and ages of beneficiaries
•  other conditional factors

As with an annuity trust, you effectively remove the funding assets from your estate, and you likewise avoid capital gains taxes.

Features & Benefits

•  Opportunity to make a substantial gift to FCC while receiving life income
•  Variable percentage payout may protect against inflation as your trust's assets grow
•  Larger gift to FCC than might otherwise be possible
•  Professional asset management
•  Receive an attractive “real” rate of return on your assets
•  Can unlock appreciated assets for diversification or increased yield
•  Immediate tax deduction
•  Avoid capital gains taxes
•  Estate tax and probate savings