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This graphic visually represents how charitable remainder annuity trusts work.

Charitable Remainder Trusts

How It Works

Here’s how you set up a remainder trust:

  • Irrevocably transfer assets to a trustee.
  • That trustee makes annual payments to you and/or other beneficiaries.
  • At the end of the trust term, the assets remaining in the trust are given to Angelo State University for a purpose of your choosing.

When you establish a charitable remainder trust, you and the trustee agree to the amount of the annual payment to you and/or other beneficiaries. The amount of the annual payment must be at least 5 percent of the trust assets’ initial fair market value and is generally taxable to the beneficiaries.

Benefits

Here are a few reasons why this type of gift to Angelo State might be ideal for you:

  • Receive annual payments.
  • Pay no immediate capital gains tax on the transfer of appreciated assets.
  • Receive federal (and possible state) income tax charitable deduction.
  • Reduce or eliminate estate taxes.

Who It’s Ideal For

A charitable remainder trust might be your preferred method of giving to Angelo State if you:

  • Want to receive annual payments for life
  • Have assets that you are able to give away. 
  • Have a large part of your portfolio in one company and want to diversify your investments
  • Want to reduce your current income taxes with an income tax charitable deduction

Assets

Assets that work especially well include:

  • Cash or funds earning low interest rates
  • Appreciated securities
  • Real property
  • Oil and gas interests

Contact Us

If you are interested in learning more about creating an Angelo State charitable remainder annuity trust, please contact the Development Office at 325-942-2116 or development@angelo.edu. We would be happy to discuss giving options and opportunities with you.

As with any planned gift, please consult your own legal and tax advisors. Our staff would also be happy to speak with your advisors.