Charitable Remainder Trust

Solutions for Large Donations

Looking for a way to give the CMC Foundation a significant gift? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advanges of setting up a charitable remainder trust.

Benefits of a charitable remainder trust include:

  • Potential for a partial charitable income tax deduction
  • Potential for increased income
  • Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

An Example of How It Works

Woman hugging dogSusan, 75, wants to make a gift to the CMC Foundation but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $30,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $276,880* in the year she creates and funds the trust. This deduction saves Susan $88,602 in her 32 percent tax bracket.

*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

  1. Contact Kristin Colon at 970-947-8380 or khcolon@coloradomtn.edu to talk about supporting the CMC Foundation by setting up a charitable remainder trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the CMC Foundation in your plans, please use our legal name and federal tax ID.

Legal name: Colorado Mountain College Foundation, Inc.
Address: 802 Grand Ave., Glenwood Springs, CO 81601
Federal tax ID number: The Foundation’s 501c3 identification number is 74-2393418.

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.

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Personal Estate Planning Kit

Our Top Free Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy. FREE!

Download My Kit