EFSC Foundation Gift Planning Guide | Page 8

Life Income Gifts > Make a gift and receive income for life CHARITABLE REMAINDER TRUST (CRT) Benefits  CRT pays individual beneficiaries an annual amount for their lives A or a fixed term of up to 20 years. Donors who create a CRT can claim an income tax deduction that represents the present value of the eventual gift to EFSC. When the CRT ends, the remaining assets are distributed to EFSC. Did You Know?  Life income beneficiaries can be the donor, family members or others. The trust principal is normally invested for a total return and grows tax free. It can be invested in a variety of diversified portfolios, including EFSC’s endowment. An Annuity Trust makes a fixed annual payment and a Unitrust makes a variable annual payment. Unitrusts are revalued annually, and if the principal in the trust appreciates payments will be correspondingly larger. But there’s a risk. If the principal depreciates payments will be smaller. 8