CHARITABLE
REMAINDER
UNITRUST
A charitable remainder unitrust (“CRUT”) is a gift plan that allows you to provide payments to yourself or others for life or a term of years, while making a generous gift to non-profit organizations you care about – such as Carolina Athletics through The Rams Club. As a CRUT donor, you would irrevocably transfer assets (usually cash, securities, or real estate) to the trust. During the CRUT’s term, the trustee invests the CRUT’s assets. Each year, the trustee pays a fixed percentage of the CRUT’s value (as revalued annually) to one or more beneficiaries named by you. When the CRUT term ends, the remaining value passes to one or more non-profit organizations – such as The Ram Club – to be used for the purpose you designate. Key Features of the Charitable Remainder Unitrust
• You can mitigate capital gains tax on the transfer of appreciated assets and receive a charitable income tax deduction. These tax benefits are possible because you are making a gift of the trust remainder to a charitable organization like The Rams Club. • The trust makes regularly scheduled income payments to you which may increase your income. CRUT income is based on a percentage of the value of the trust assets as determined annually. Because unitrust payments fluctuate with the market, this form of life income gift may provide a hedge against inflation. • The University of North Carolina at Chapel Hill Foundation can serve as trustee for CRUTs that align with Carolina’s policies and guidelines. • You can make additional contributions to your unitrust and receive additional charitable income tax deductions for each contribution. Is a Charitable Remainder Unitrust a viable option for you? The Rams Club and Carolina’s Office of Gift Planning can help you think through the issues and your planning options. Please contact us for a free, confidential discussion. If you and/or your financial advisor would like more information on a Charitable Remainder Unitrust or other estate gift options strategies and the impact your gift could have on Carolina student-athletes, please contact Beth MacKethan in the Office of Gift Planning at 919.962.6628 or bmackethan@unc.edu.
Doug and Sharon Rothwell met on the first day of orientation for master’s degree students in Chapel Hill. With successful careers in business and state government as a backdrop, their retirement plans included moving back to Chapel Hill from Ann Arbor, Michigan. They came back to Chapel Hill in 2015 and looked for more ways to engage with UNC. “First we decided to give back to the program where our careers started,” Doug said, “and athletics and the arts make Chapel Hill a great place to live. The university and the town wouldn’t be what they are without having the arts and athletics to complement a great academic program.” Sharon said the staff at The Rams Club and the Office of University Development helped them explore options. “They were willing to sit down with us and go through our needs, our interests, our priorities, and help us tailor our giving to fit our personal financial needs and capacity, as well as our interests,” Sharon said. “They made it simple and explained our options.” In addition to endowing a scholarship with a cash gift, the Rothwells added to the fund through a Charitable Remainder Unitrust (CRUT) – where they receive a tax deduction and will receive an income stream for life. After their deaths, the trust assets will be added to their scholarship fund.
DOUG AND SHARON ROTHWELL CAROLINA FOREVER MEMBERS
RAMSCLUB.COM
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