A charitable remainder trust offers a powerful way to support UC Berkeley while providing reliable income for you or your loved ones. It’s a thoughtful solution for donors with appreciated assets who want to make a significant gift without sacrificing financial security.
A larger gift that pays you income
With a charitable remainder trust, you transfer assets, often cash, appreciated securities, or unmortgaged real estate, into a trust that pays income to you or other named beneficiaries. Payments continue for life or for a set term of up to 20 years. When the trust ends, the remaining balance supports UC Berkeley.
In addition to providing income, a charitable remainder trust can offer meaningful tax advantages. You may qualify for a federal income tax charitable deduction in the year you fund the trust, and if you contribute appreciated assets, you can often defer or reduce capital gains taxes that would otherwise come due on a sale.
Choosing the right type of trust
- Charitable remainder annuity trust. Pays you the same dollar amount each year, regardless of how the trust’s investments perform. A good fit if you prefer predictable income.
- Charitable remainder unitrust. Pays a fixed percentage of the trust’s value, recalculated annually. Your payments rise and fall with the trust’s value, offering potential growth over time.
- Lifetime or term-of-years payments. You decide whether income continues for the lifetime of one or more beneficiaries, or for a defined period of up to 20 years.
- Single or multiple beneficiaries. A trust can pay income to you alone, to you and a spouse or partner, or to other loved ones you designate.
Do You Have Questions?
How to create a charitable remainder trust
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1
Talk with our team
We’ll walk through your goals and help you decide whether an annuity trust or unitrust is the right fit.
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2
Choose your funding asset
Cash, appreciated securities, and unmortgaged real estate are all common options.
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3
Work with your attorney
Your estate planning attorney drafts the trust document based on the structure you’ve chosen.
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4
Fund the trust
Once funded, your income payments begin and your charitable deduction takes effect.