Charitable Remainder Trust
A charitable remainder trust is a legal trust arrangement allowing you to make a gift to the Atlantic School of Theology in the future and receive a charitable tax receipt now. If you fund the trust with income producing assets the income is paid to you, or your named beneficiary, for a period of years or for life according to the trust terms you establish. The trust assets are managed by a trustee of your choosing. When the trust is terminated, the assets are delivered to AST.
If the trust is irrevocable (you can not access the principal of the trust) you receive a tax receipt now for the calculated present value of the future gift to AST. If you fund the trust with highly appreciated property there is a deemed disposition for tax purposes, but the tax credit from the donation receipt usually will more than offsets the tax owing.
Rita and Edgar, both aged 78, arrange a trust funded with $200,000 of bank stock they purchased many years ago for $100,000. They realize a gain of $100,000 of which $50,000 is taxable at 46.5% resulting in a tax owing of $23,250. The calculated present value of the future gift of $200,000 is $125,000, for which they receive a tax receipt. The resulting tax credit of $58,125 ($125,000 x 46.5%) more than offsets the tax on the gain. Upon the death of the survivor AST receives the $200,000.
For further information please contact the Advancement Office.