Charitable Remainder Trusts
Charitable Remainder Trusts (CRTs) are extremely flexible and can be structured to meet almost any personal and philanthropic goal. CRTs can be funded with a variety of assets, including cash, securities, stock, farm and timber property, business assets, and residential property. You (or a beneficiary) receive annual income for life or the term of the trust and the remainder goes to Washington State University to benefit the area designated in the Gift Use Agreement.
How a Charitable Remainder Trust Works
A CRT allows you to provide income to yourself or others for life while making a generous gift to WSU. It works in the following way:
- You irrevocably transfer assets into the trust.
- In return, you and the beneficiaries you've selected receive income.
- You receive a charitable income tax deduction.
- You avoid capital gains tax on any appreciation in the transferred asset.
- You reduce the size of your estate.
- You receive the satisfaction of making an important future gift to WSU.
- When the trust terminates, the remaining principal passes to WSU to be used for the purpose you designate.
Creating a Charitable Remainder Trust
- You or your advisors contact the Gift Planning Office to discuss your personal and philanthropic goals.
- The Gift Planning team will create a custom illustration to outline how a CRT can help you meet your goals.
- The WSU Foundation can serve as trustee, providing trust administration and asset management.
- If the WSU Foundation serves as trustee, our attorney drafts the trust at no cost to you.
- The WSU Foundation prepares a Gift Use Agreement outlining your wishes for the future use of the trust remainder.
- You receive recognition for your gift and become a member of the Legacy Associates. If you prefer, we will honor your wish to remain anonymous.