Provide for Your Loved Ones and Roberts Wesleyan
Do you want to benefit from the tax savings that result from supporting Roberts Wesleyan, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.
There are two ways charitable lead trusts make payments:
- A charitable lead annuity trust pays a fixed amount each year to Roberts Wesleyan and is more attractive when interest rates are low.
- A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to Roberts Wesleyan go up as well.
Example Scenario
George would like to support Roberts Wesleyan and receive tax benefits. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George’s trust pays $60,000 (6% of the initial fair market value) to Roberts Wesleyan each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
How do I fund it?
Your options include:
- Cash
- Appreciated securities
- Closely held stock
- Real estate
- Tangible personal property
- IRA assets
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Next Steps
- Contact Marna Distaffen at 585-594-6535 or distaffenm@roberts.edu to talk about supporting Roberts Wesleyan University.
- Seek the advice of your financial or legal advisor.
- If you include Roberts Wesleyan in your plans, please use our legal name and Federal Tax ID.
- Legal Name: Roberts Wesleyan Universit
- Address: 2301 Westside Drive, Rochester, NY 14624-1997
- Federal Tax ID Number: Please contact us for our federal tax ID number.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
A copy of our most recently filed financial report is available from the Charities Registry on the New York State Attorney General’s website (www.charitiesnys.com) or, upon request, by contacting the New York State Attorney General, Charities Bureau, 28 Liberty Street, New York, NY 10005, or us at 2301 Westside Drive, Rochester, NY 14624-1997. You also may obtain information on charitable organizations from the New York State Office of the Attorney General at www.charitiesnys.com or (212) 416-8401.