Charitable Remainder Unitrust (CRUT)

Charitable Remainder Unitrust (CRUT)

If you own appreciated assets and are concerned about capital gains taxes, a charitable remainder unitrust (CRUT) may be a smart way to achieve both your financial and charitable goals.

A CRUT allows you to convert assets into a stream of income while ultimately supporting Roger Bacon High School.

How It Works

A charitable remainder unitrust follows a simple structure:

1. Fund the Trust
   You transfer cash or appreciated assets—such as stock or real estate—into a trust.
2. Tax-Efficient Sale
   If appreciated assets are used, the trust can sell them without immediate capital gains taxes.
3. Receive Income
   The trust pays you (or other beneficiaries you choose) income each year based on a percentage of the trust’s value.
4. Support Roger Bacon
   After the trust term ends, the remaining assets are directed to Roger Bacon High School.

Key Benefits

A CRUT offers a combination of income, tax advantages, and long-term impact:

• Generate income for life, a set number of years (up to 20), or a combination of both
• Reduce or avoid immediate capital gains taxes on appreciated assets
• Receive a charitable income tax deduction in the year the trust is established
• Create a meaningful future gift that supports Roger Bacon’s mission

Income That Can Grow Over Time

Unlike fixed-payment arrangements, a unitrust provides payments based on a percentage of the trust’s value. This means your income has the potential to increase as the trust assets grow.

Choosing the Right Structure

There are different payout options available depending on your financial goals and the type of assets you contribute. The right structure can help balance income needs, tax considerations, and your charitable intentions.

We encourage you to work with your financial advisor and tax professional—and we are happy to assist in the conversation—to determine the best approach for your situation.

A Strategy for Today and Tomorrow

A charitable remainder unitrust can help you manage taxes, create dependable income, and leave a lasting impact on future generations of Roger Bacon students.