Gifts that Provide the Opportunity to Grow Income

• The income from a unitrust can grow over time, providing you with a potential hedge against inflation.
• You can claim a charitable income tax deduction for a portion of your gift amount.
• If you fund your trust with stock or real estate, you also avoid paying immediate capital gains taxes on the appreciation.
• Unitrust income is taxed at favorable rates, since it usually consists of part ordinary income and part capital gains.
• You can structure a unitrust to pay income to multiple people, either for their lifetimes (if they are age 50 or older) or for a specific number of years (up to 20).
• All Carleton unitrusts are invested and administered by TIAA Kaspick, an industry leader in tax-efficient charitable trust management.

When the term of the unitrust is over, the trust assets are transferred to Carleton to support the college’s mission or for a purpose you designate.

• Unitrust income is based on the trust assets’ annual fair market value and will vary from year to year. Many Carleton donors choose a five percent payout rate to help preserve their purchasing power over time.
• It is possible to fund a unitrust now while deferring most of the trust income until a later date. This option, known as a flip unitrust, allows you to receive a current income tax deduction, enjoy tax-free growth on trust assets, and diversify your retirement income sources.

• You receive a charitable income tax deduction in the year that you make your gift, but minimize income until you need it and enjoy tax-free growth on the trust assets.
• If you fund your trust with stock or real estate, you avoid paying immediate capital gains taxes on the appreciation.
• You can set up a unitrust to pay income to multiple people, either for their lifetimes (if they are age 50 or older), or for a specific number of years (up to 20).
• You can also list more than one charity as a remainder beneficiary.
• Your unitrust will be invested and administered by TIAA Kaspick, an industry leader in tax-efficient charitable trust management.
• The income from a unitrust can grow over time, providing you with a potential hedge against inflation.

When the term of the unitrust is over, the trust assets are transferred to Carleton to support the college’s mission or for a purpose you designate.

• If you fund a unitrust with an illiquid asset, such as real estate, you can choose to have the sale of the asset cause your trust to flip (and begin paying you more income the following year).
• You can choose a triggering event (such as your birthday, a birth, or a death) or a specific date to flip the trust.
• The income from a unitrust will vary from year to year. Many Carleton donors choose a five percent payout rate to help preserve their purchasing power over time.