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Case Study: A Trust That Gives a Lifetime of Benefits to You Now and Us Later

If you've been considering a gift to a Genesis Foundation but are worried about your financial security, you may find a solution in a charitable remainder trust. Read about Susan and the financial and tax benefits she received from creating this gift, then determine if it's right for your situation.

Donor profile: Susan, 75, wants to make a gift to a Genesis Foundation but is worried about having enough money to pay her bills and cover unexpected expenses.

Gift: Susan creates a charitable remainder unitrust with annual payouts equal to 6 percent of the fair market value of the trust assets. She'll receive 6% for life. She funds the trust with $100,000 worth in stock, which she originally bought for $30,000. The stock paid her annual dividends of $2,000.

Benefits to donor: Susan receives $6,000 the first year from the trust, tripling her previous investment income. Subsequent payout amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $55,434. This deduction saves Susan $13,859 in her 25 percent tax bracket.

Note: If Susan had sold the stock, she would not have received the charitable deduction, and she would have paid an additional $10,500 in capital gains tax.

Benefits to those we serve: At the end of the trust term, we will receive a projected $112,683 to continue our charitable work, based on 7 percent growth.

If you're interested in a charitable remainder trust or want to learn about other ways to support us, contact Steve Goebel, CFRE at 309-281-4392 or

*Based on a 3.4 percent charitable midterm federal rate

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The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.

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