Charitable Remainder Annuity Trust

The Charitable Remainder Annuity Trust provides for the payment of a fixed amount annually, or at more frequent intervals, to a designated beneficiary or beneficiaries. The amount must equal at least 5 per cent of the initial fair market value of the trust. At the death of the last life income beneficiary, or at the end of the designated term of years, the remaining trust principal is distributed to a designated charitable organization.

Example:
If you establish a $100,000 charitable remainder annuity trust which provides for annual payments of $8,000 to your sister, and next year the value of the trust appreciates to $110,000, your sister will receive $8,000. If, the following year, the trust depreciates in value to $90,000, your sister still receives $8,000.

If you would like more information about Charitable Remainder Annuity Trusts, please call the Virginia College Fund at (800) 992-8063, write us at 6002A West Broad Street, Suite 201, Richmond, Virginia 23230, or e-mail us at thevcf@thevcf.org.
 
We look forward to hearing from you!

thevcf@thevcf.org
Last revised on June 23, 2008.