Charitable Remainder Trust

Charitable Remainder Trust (Annuity or Unitrust)

For gifts of $100,000 and greater, you can create a charitable remainder trust, which can be created during your lifetime or through your estate. When you transfer assets and name Penn State as the trustee, Penn State invests the assets for the length of the trust term. This gift option provides you or your loved ones with annual income, for the rest of your or your loved ones’ lifetime or a term of no more than twenty years. When the trust term is over, the remaining assets are distributed to programs at Penn State that you designated in the initial agreement. This giving opportunity ensures future income for you and your family while supporting Penn State’s mission.

There are two types of charitable remainder trusts:

  • Charitable Remainder Annuity Trust – This option pays a fixed amount each year for as long as the trust term lasts.
  • Charitable Remainder Unitrust – Payments are equal to a fixed percentage of the unitrust’s assets after they are revalued each year. Therefore, income is variable from year to year.

Benefits of establishing a charitable remainder trust with Penn State include:

  • Ensuring a bright future for Penn State and contribute to our tradition of giving.
  • Supplementing your retirement income.
  • Unlocking appreciated assets (securities, real estate, business interests, etc.) without incurring a capital gains tax.
  • Obtaining a significant income tax charitable deduction.

To learn more about how you can establish a charitable remainder trust with Penn State, download our Charitable Remainder Trust fact sheet and other publications.

Penn State’s Office of Gift Planning will confidentially answer your questions about giving and work closely with your legal, tax, and other advisers to come up with an integrated plan that meets each of your personal goals. Please contact us anytime or click here to learn more.