Charitable Remainder Annuity Trust

With Charitable Remainder Annuity Trust, the Sedalia School District Foundation can be the designated trustee of your gift of cash or securities. The trust provides you and/or your designee an annual fixed income at a predetermined percentage that is at least 5 percent of the initial fair market value of the trust assets.

Income earned by the trust that exceeds the annuity amount is simply added to trust principal. If trust earnings are insufficient to meet the annuity amount, principal will be used to make up the deficit.

There are numerous tax benefits tied to Annuity Trusts. The plan allows a current year income tax charitable deduction for a portion of the value of your contribution. If your gift is appreciated property, you are relieved of capital gains tax on the sale of the property.

Annuity Trusts may be funded with a minimum gift of $50,000 and a minimum designee age of 60. Unlike Unitrusts, no additional contributions can be made to this type of trust, although additional trusts may be established easily.