Solutions for Large Donations
If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. At the end of the trust term, the balance in the trust goes to the University of Alabama at Birmingham.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
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.
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An Example of How It Works
Susan, 75, wants to make a gift to UAB but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 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 $300,540* in the year she creates and funds the trust. This deduction saves Susan $95,173 in her 32% tax bracket.
*Based on a 2.0% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact the Office of Planned Giving at (205) 996-7533 or firstname.lastname@example.org to talk about supporting UAB by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include UAB in your plans, please use our legal name and federal tax ID.
Legal Name: The Board of Trustees of The University of Alabama for The University of Alabama at Birmingham
Address: 1720 2nd Avenue South, AB 1270, Birmingham, AL 35294-0112
Federal Tax ID Number: UAB Tax I.D. Number: 63-6005396 UABEF Tax I.D. Number: 63-6155094
QUESTIONS? I CAN HELP.
Kimberley S. Coppock, J.D.
Sr. Director of Development
Office of Planned Giving
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.