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Sale and Unitrust

Sale and Unitrust
Cash Received
Income to Donor
Sale and Unitrust
Are your appreciated assets (such as stock, bonds or real estate) producing little or no income?

If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution.

How a Sale and Unitrust Works

  1. You give a portion of your asset to a charitable remainder unitrust.
  2. When the asset is sold, you and the unitrust each receive a portion of the proceeds.
  3. The unitrust makes payments to you each year for the rest of your life.
  4. You receive an income tax charitable deduction in the year in which you fund the unitrust.

Benefits of a Sale and Unitrust

  • You receive some cash outright from the sale, which you may need to purchase another residence, travel or meet your daily needs.
  • The unitrust provides you with an income for the rest of your life and future retirement.
  • The income tax deduction for funding the unitrust may reduce your tax bill.
  • When you pass away, the assets remaining in the unitrust will carry out your wish to help your Jewish Federation, Jewish Community Foundation or The Jewish Federations of North America further its mission.

Any tax consequences described on this page are based on U.S. federal tax law. Charitable deductions from state and local taxes or from Canadian and provincial taxes may not be available to the same extent as from U.S. federal taxes. The Jewish Federations of North America (JFNA) does not provide legal advice. Donors are encouraged to seek independent tax and legal counsel. You may read JFNA's charitable solicitation disclosure statement here and important information about endowment gifts and bequests to JFNA here.