Major Gifts > The Flexibility of a Unitrust
The Flexibility of a Unitrust
The Unitrust is a gift to the Bogart Pediatric Cancer Research Program, but it is also much more. Because the unitrust is a deferred gift plan, it lets you make a major donation of securities to us, but you get to keep the income from those assets.
How a Unitrust Works
The concept of this combination investment plan/gift is simple. You fund a unitrust with assets—appreciated property of stocks generate the greatest net savings for you. You choose a set percentage of the current value of the unitrust, which may be redetermined annually, that you will receive as a life income. After your lifetime (and, if you wish, that of a survivor), the principal of your trust goes to the Bogart Pediatric Cancer Research Program.
You can receive the same percentage every year, even if the unitrust income is less then that percentage. Any difference comes out of the capital gains or principal. Or, you can choose a unitrust with a net income plus make-up option, so that if the actual income amount is below the stated percentage, you receive only that amount. In this scenario, deficiencies are made up in later years when the unitrust income exceeds the stated percentage.
Add Up the Benefits
A unitrust offers many advantages:
- In the year you create and fund a unitrust, you get a sizeable income tax charitable deduction.
- If you use appreciated securities to fund a unitrust, you completely avoid capital gains tax on the appreciation. And you deduction is based on the current market value, not the cost basis.
- You secure a life income, which is often greater then your previous yield.
- You’re provided with a hedge against inflation.
- Professional management of these assets frees you from investment worries.
Most important, you make a personal commitment of a significant gift to the foundation to pursue our mission.