Charitable Remainder Annuity Trust

A charitable remainder annuity trust is a gift plan defined by federal tax law that allows you to provide income to yourself or others while making a generous gift to Babson College. The income may continue for the lifetimes of the beneficiaries you name, a fixed term of not more than 20 years, or a combination of the two.

As an annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Babson College or a bank trust department).

During the trust’s term, the trustee invests the trust’s assets. Each year, the trustee distributes a fixed dollar amount to your income beneficiaries. Payments continue until the trust term ends or until the highly unlikely event that the trust distributes all its assets.

When the annuity trust term ends, the trust’s principal passes to Babson College, to be used for the purpose you designate.

Benefits Include:

• You will qualify for a federal income tax deduction.
• The income beneficiaries you name will receive annual income for life, or for the period you designate.
• If you fund the trust with an appreciated asset and the trust sells it, there will be no immediate tax on the capital gain. If you were to sell such an asset yourself, you would owe tax on all of the capital gains realized in the sale.
• Your estate may enjoy reduced probate costs and estate taxes.
• You will become a member of the Roger and Grace Babson Legacy Society.
• You will provide generous support to Babson College.

*Note: The information on this site is not intended as legal, "tax" or investment advice. For such advice, please consult an attorney, "tax professional" or investment professional.