Trusts

A trust is another effective way to give to the Montclair State University Foundation. A trust can be revocable, often called a living trust, or irrevocable. A revocable trust is more flexible but does not save on taxes. Trusts become irrevocable, however, after the death of the grantor. Irrevocable trusts cannot be changed but offer tax benefits.

Some specific types of theses trusts are listed below.

Charitable Remainder Trust

When you create a charitable remainder trust, you irrevocably transfer money, securities or other assets to a trust that will then pay you an income for life or for a period of years. If you wish, the trust also can pay an income to another beneficiary of your choice. At the death of the surviving beneficiary, the remaining principal in the trust goes to the Montclair State University Foundation.

You fund the trust with the desired amount. The rate of income return you select must be at least 5 percent. The best rate for you will depend upon the number of beneficiaries you select and their ages. Third, you decide which type of charitable remainder trust will work best for you.

Charitable Remainder Annuity Trust

This type of trust pays you a fixed dollar amount, which works well if you want reliable income.

Charitable Remainder Unitrust

A unitrust pays you a variable amount equal to a stated percentage of the net fair market value of the trust assets as recalculated yearly.

Whether you choose an annuity trust or a unitrust depends on your financial situation. With an annuity trust, you receive the same fixed amount each year that you choose at the beginning. So, if you want to be certain of the dollar amount you will receive, this makes sense. You can not make any additional contributtions to an annuity trust.

In comparison, a unitrust is a good choice if your goal is to grow assets and assume some risk. The valuation can rise or fall, meaning a higher or lower income for you. Another advantage to a unitrust is that you can make additional contributions to the trust without having to create a separate trust.

For more information based on your specific situation it is important to consult with your attorney, tax professional or investment professional. Also, our own knowledge of charitable giving methods is available for you and your advisors, with no obligation.

For more information or to receive a personalized calculation of how you could benefit from a planned gift to the Montclair University Foundation, please contact Jan Smith at 973-655-3439 or via email at smithja@mail.montclair.edu.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax or investment professional.