| Gift Annuity | Unitrust | Annuity Trust | |
|---|---|---|---|
| Gifts used to create plan | Generally cash & publicly traded securities | Cash, securities, real estate, property | Generally cash & publicly traded securities |
| Suggested minimum gift to create | $10,000 | $25,000 | $25,000 |
| Add future gifts? | No (easy to create another annuity) | Yes | No |
| Suggested minimal additional gift | $5,000 | Any amount | N/A |
| Income tax deduction | Dependent on beneficiary age(s), IRS discount rate | Dependent on length of trust and IRS discount rate | |
| Income type | Fixed | Variable | Fixed |
| Defer start of income? | Yes | Yes | No |
| Payout percentage | Based on age(s) from ACGA rate schedule | By law, at least 5% (generally, Clarkson trusts range between 5-6%) | |
| Payment frequency | Monthly, quarterly, semiannual or annual | ||
| Payments guaranteed? | Guaranteed based on Clarkson’s assets | Guaranteed based on assets within the trust | |
| Taxation of income | May include ordinary, capital gain and tax-free | May include ordinary, capital gain, tax-exempt and tax-free | |
| Investment of funds | In accordance with NYS law | In accordance with terms of trust and law | |
| Investment manager | BNY Mellon Wealth Management | ||
| Income Beneficiaries | 1 or 2 individuals | Donor and/or others named in trust document | |
| Is gift revocable? | No | No | No |
| Potential benefits to donor | Give to Clarkson & receive income; count gift in fundraising campaigns & anniversary reunions; Roundtable recognition; join Annie Clarkson Society; generate charitable deduction; save capital gains tax; no cost to create; guaranteed, fixed income; tax-free income depending on funding asset; increase income; save estate tax | Give to Clarkson & receive income; count gift in fundraising campaigns & anniversary reunions; Roundtable recognition; join Annie Clarkson Society; generate charitable deduction; variable income; increased income; save capital gains tax; save estate tax | Give to Clarkson & receive income; count gift in fundraising campaigns & anniversary reunions; Roundtable recognition; join Annie Clarkson Society; generate charitable deduction; stable income; increase income; save capital gains tax; save estate tax |
| Benefits to Clarkson | Clarkson can thank you now for your gift; Clarkson can plan the use of your gift with you; Clarkson can encourage others to consider similar gifts. | ||
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Are you thinking of funding a charitable trust and would like to speak confidentially to someone who has already created a trust with Clarkson? Tom Basso ’74 would be happy to hear from you. Click to contact Tom.
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This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift.