FORCANCER - Moores Cancer Center

PHILANTHROPY NOTEBOOK
As part of our ongoing commitment to help you
make the most of your philanthropic support of
the Cancer Center and other non-profit organizations,
we are pleased to provide you with the
following information on a unique way to use
charitable remainder trusts.
Charitable Trusts to
Fund Educational Expenses
Every spring marks a special turning point in the lives of
thousands of teenagers: high school graduation. And each
year many young people go on to begin their college studies.
College can be a very special rite of passage, but as most
parents and grandparents know, it
can also be an expensive one.
A growing number of charitably
inclined individuals have discovered
the value of a charitable remainder
trust to fund the educational
expenses of their children or
grandchildren, and to maintain
their philanthropic goals.
Take for example Mr. and Mrs.
Appleton, who promised to help
pay for their granddaughter’s college
expenses many years ago. To do
this, the Appletons considered a
variety of options, including selling
their highly appreciated securities;
however, this option would have
Donors
Mr. & Mrs. Appleton
Charitable
Remainder
Trust
Cash, marketable securities
or other appreciated assets
Income to child
or grandchild
for educational
expenses
Charitable
Remainder Gift
after 4 years
generated a significant capital gains tax on the profit from
the sale.
Ultimately, the Appletons chose to fund a charitable
remainder trust with their appreciated assets. A charitable
remainder trust can be established for a specific period of
time up to 20 years.
In the Appletons’ case, they created a charitable remainder
trust to provide four annual payments to their granddaughter
during her college career. After the four-year
period, the remaining assets in the trust were distributed to
the Appletons’ favorite charity.
Additionally, the Appletons benefited
because they received a charitable
income tax deduction during the
year the trust was established, and
the securities were sold free of capital
gains tax by the charitable remainder
trust.
For further information about charitable
remainder trusts and how they
can fulfill your financial goals, contact
Geoff Graham, Associate
Director of Development, at (858)
822-0024 or gcgraham@ucsd.edu.
This article is not intended to offer
legal or tax advice. Specific circumstances
may vary and services of an
attorney and/or professional advisor
should be obtained.
UCSD Cancer Center
9500 Gilman Drive #0658
La Jolla, CA 92093-0658
(858) 822-0022
Non-Profit Org.
U.S. Postage
PAID
San Diego, CA
Permit #1909