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Charitable Remainder Trust

Solutions for Large Donations

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. At the end of the trust term, the balance in the trust goes to Lehigh University.

These types of gifts may offer you tax benefits and the option for income.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

An Example of How It Works

Woman hugging dogSusan, 75, wants to make a gift to Lehigh University but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $299,845* in the year she creates and funds the trust. This deduction saves Susan $95,950 in her 32% tax bracket.

*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Additional Resources

May 4, 2021—Family and Philanthropy: Growing a Lasting Legacy Presentation—An Introduction

Partnering with nationally-known family governance leader, Tom Rogerson, we shared tools for family communication, philanthropic vision, legacy planning, succession, and education. This was the first in a series of presentations as part of the Lehigh Family Philanthropy initiative.

View Presentation

June 2021—Family and Philanthropy: Summer Family Fun Work—Activities to strengthen family relationships and communications

As a follow up to the May 4 Family and Philanthropy presentation, we are offering “Summer Family Fun Work” activities Tom Rogerson uses with his private clients to strengthen family relationships and communications—which are the foundation to building trust and successfully managing wealth.

If you would like to learn more, please complete the short form. We would be delighted to share the information with you. You will receive a packet by email that includes several activities for you to review and share among your family.

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Additional Resources

Additional Resources

Fill out a brief form to see which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.

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Gifts That Pay

Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options. Fill out a brief form to download your FREE copy of the guide Plan for Retirement With a Deferred Gift Annuity.

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Calculate Your Benefits

Submit a few details and see how a charitable remainder trust can benefit you.

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Personal Estate Planning Kit

Not Sure How to Begin Planning? Fill out a brief form to download your FREE copy of the guide.

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Next Steps

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Next Steps

  1. Contact the Office of Planned Giving at (610) 758-4749 or intower@lehigh.edu to talk about supporting Lehigh University by setting up a charitable remainder trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Lehigh University in your plans, please use our legal name and federal tax ID.

Legal Name: Lehigh University
Address: 27 Memorial Drive West, Bethlehem, PA 18015-3086
Federal Tax ID Number: 24-0795445

Contact Us

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A charitable bequest is one or two sentences in your will or living trust that leave to Lehigh University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Lehigh University, a nonprofit corporation currently located at 27 Memorial Drive West, Bethlehem, PA 18015-3086, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Lehigh University or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Lehigh University as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Lehigh University as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Lehigh University where you agree to make a gift to Lehigh University and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
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