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Charitable Remainder Annuity Trust
(Gift example*)

Example

A 70-year-old donor in the 35% tax bracket establishes an annuity trust with $100,000 of appreciated stock, originally purchased for $10,000. Trust pays donor 6.0% of the initial value as an annuity for life. Trust earns an 8.0% average total return. Assume IRS discount rate of 5.8%.

Trust principal

$100,000

Income tax deduction

$47,168

Income tax savings (35%)

$16,589

Cap. gains tax savings (15%)

$13,500

Annual income

$6,000

Projected after-tax benefit to donor

$70,247

Projected benefit to Samford University

$160,649

PLEASE NOTE: These examples are for illustrative purposes only and are not intended as legal or tax advice. Consult your own legal and tax advisors prior to making any material decisions based on this data.


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