Charitable Remainder Trusts

Charitable Remainder Trusts

Charitable Remainder Trusts (CRT) are ideal for individuals with assets that have appreciated in value and would be subject to significant tax liability if liquidated.  You may make a gift of cash, marketable securities, or certain types of real estate, art and other tangible personal property to AFHU and designate yourself and/or another beneficiary to receive income for life.  

If you establish a CRT, you may contribute your assets to AFHU without incurring capital gains tax and may receive an immediate charitable tax deduction on a significant portion of your contribution in the year the gift is made.  After the term of the trust, the remainder assets are transferred to AFHU to support The Hebrew University of Jerusalem.  Established with a major gift of $100,000 or more to AFHU, CRT are held and managed separately with the benefit of individualized investment instructions.

The two forms of Charitable Remainder Trusts are:
The Charitable Remainder Annuity Trust (CRAT): CRAT provides income for life at a fixed dollar amount based on the value of your gift at the time the trust is established.  

The Charitable Remainder Unitrust (CRUT): CRUT provides annual income payments that are variable and based on the annual percentage of the trust's principal computed from year to year. If you are under the age of 65, you may wish to consider providing a secure life income to your parent, senior relative or friend by designating them as the income beneficiary of a Life Income Plan.  As the donor, you receive the charitable income tax deduction and reduce your taxable estate.

Custom illustrations of the income and tax benefits of a Charitable Gift Annuity and/or a Charitable Remainder Trust are available from AFHU upon request.  Establishing a Life Income Plan through AFHU helps to ensure that The Hebrew University has the resources needed to meet future challenges as well as to educate the best and the brightest minds. Planned gifts offer a win-win situation, benefiting donors and Israel’s future leaders, who need and deserve our support.

For more information, please contact an AFHU regional office near you.