Charitable Remainder Trusts
A flexible way to give and receive an income
To create a charitable remainder trust, you place assets into an irrevocable trust and name a trustee (often a bank trust department). The trustee invests the assets (which can grow tax-free) and pays an income for life or for a set term of years to the beneficiaries you select. When the last income beneficiary dies or the trust's term ends, the trust is dissolved and the remaining assets (the charitable remainder) are given to the Michigan Tech Fund to be used for the purpose you designated.
Charitable Remainder Unitrust
Allows you to receive a variable income
The main feature of the charitable remainder unitrust is a variable income. With this type of trust, you receive a lifetime or term income that is a percentage of your trust's assets revalued annually (by law, a minimum of 5 percent). Income payments increase or decrease with the changing value of the trust.
The unitrust provides a potential hedge against inflation as income payments may rise over time. In addition, the unitrust can be structured to defer income and maximize growth (for retirement planning, for example) or to handle specific types of assets.
Charitable Remainder Annuity Trust
Provides you with a fixed income
A charitable remainder annuity trust provides a fixed income. With this type of trust, your lifetime or term income is a fixed annuity, based on a percentage of the initial value of your trust assets. The annuity amount must be at least 5 percent, by law.
The annuity trust is most often used when your primary goal is a fixed income and long-term inflation is not a concern.
Establishing a Charitable Remainder Trust
You will need to establish a charitable remainder trust with an outside party as a trustee, such as a bank trust department. Depending on the type of trust you choose, you may use a variety of assets, including cash, publicly traded stocks, mutual funds or bonds, closely held stock, or real estate.
Charitable remainder trusts can be structured in different ways to meet your financial and charitable goals. Selecting the form that is best for you requires careful consideration with your professional advisors and the Michigan Tech Fund staff. The Fund can provide you and your professional advisors with additional information and specific illustrations on how a charitable remainder trust or other life income gift can work for you.
Read a Story about a donor who gave a Charitable Remainder Trust
McNair Society
The McNair Society recognizes those who have left a legacy for Michigan Tech by providing specific bequests or planned gifts through their estates. This giving society is named for Fred McNair, Michigan Tech's president from 1899-1924. Through McNair's vision and commitment to leave a legacy for future Michigan Tech students, the fledgling college grew and prospered during his presidency.
If you would like more information about the McNair Society or are considering including the Michigan Tech Fund in your estate plans, please contact Eric Halonen (ehalonen@mtu.edu), (906) 487-3325. If you have already included the Michigan Tech Fund in your plans and would like to be recognized, please let us know. We would be pleased to honor you as a member of the McNair Society. Please contact Eric Halonen or fill out the McNair Society Declaration of Intent form here on our website and return it to the Michigan Tech Fund (address) to Mr. Halonen's attention.
View the McNair Society Declaration of Intent Form