Sale and Unitrusts
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What is a Sale and Unitrust?
A Sale and Unitrust is a planned giving arrangement where a donor sells appreciated assets to Cure SMA in exchange for an income stream and a Charitable Remainder Unitrust.
- In a Sale and Unitrust, a donor sells appreciated assets, such as real estate or securities, to Cure SMA.
- In exchange for the assets, Cure SMA pays the donor an income stream for life or a specified term, based on a fixed percentage of the asset's fair market value, which is recalculated annually.
- Upon the donor's death or the termination of the income stream, the remaining assets in the trust, known as the Charitable Remainder Unitrust, are distributed to Cure SMA.
Benefits from a Sale and Unitrust:
- Potential income for life: Donors receive a reliable income stream for life or a specified term based on the fair market value of the assets transferred to the trust.
- Capital gains tax savings: By selling appreciated assets to Cure SMA, donors may potentially avoid or reduce capital gains tax on the appreciation of the assets' value.
- Charitable income tax deduction: Donors may be eligible for a charitable income tax deduction for the present value of the charitable remainder interest passing to Cure SMA.
- Estate tax reduction: The value of the assets passing to Cure SMA upon termination of the income stream is removed from the donor's taxable estate, potentially reducing estate tax liabilities.
How your donation will benefit the SMA community
- Basic research to pave the way for new SMA muscle treatments and a cure
- SMA advocacy initiatives like caregiving access and transportation
- Improving standardized care for every person with SMA
“If it weren't for Cure SMA, we might not have the treatments in place that have helped my daughter to thrive while living with SMA. I'll forever be grateful and do what I can to support Cure SMA."
How a Sale and Unitrust Works
A donor sells appreciated assets to Cure SMA in exchange for an income stream for life or a specified term. The income is calculated based on a fixed percentage of the asset's fair market value, which is recalculated annually. Upon the donor's death or the termination of the income stream, the remaining assets in the trust, known as the Charitable Remainder Unitrust, are distributed to Cure SMA.
Provides donors with a fixed income stream based on a predetermined percentage of the trust assets' fair market value.
The income beneficiaries receive is the lesser of the trust's actual income or a fixed percentage of the trust assets' fair market value, with any shortfall in income payments made up in subsequent years when the trust's income exceeds the payments.
Contact Us
If you have any questions, would like further information, or want help making your contribution then please contact us at [email protected] to get started.
Legacy giving typically takes many conversations and is not a fit for everyone. Conversations with Cure SMA about planned giving should be considered general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting, or other professional advice. To determine how a gift or estate planning decision might affect your circumstances, it is expressly recommended that you consult an attorney, financial advisor, or other qualified professional.