Planned Giving at the Binghamton University Foundation

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Charitable Remainder Annuity Trust
(Gift example*)

Example

A 70-year-old donor in the 35% tax bracket establishes an annuity trust with $100,000 of appreciated stock, originally purchased for $10,000. The trust pays the donor 6.0% of the initial value as an annuity for life. The trust earns an 8.0% average total return. Assume an IRS discount rate of 5.4%.

Trust principal	$100,000
Income tax deduction	$47,168
Income tax savings (35%)	$16,589
Cap. gains tax savings (15%)	$13,500
Annual income	$6,000
Projected after-tax benefit to donor	$70,247
Projected benefit to the Binghamton University Foundation	$160,649

PLEASE NOTE: These examples are for illustrative purposes only and are not intended as legal or tax advice. Consult your own legal and tax advisors prior to making any material decisions based on this data.

For more information

Email us, complete the personal illustration form, or call us at 607-777-4712 so that we can assist you through every step of the process.