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Unitrusts and gift annuities

A gift that supports life income

Support charitable causes while securing lifetime income for yourself or your loved ones. The IU Foundation offers two gift options for generating life income that can be funded by real estate. You can use your property to fund a charitable remainder unitrust (CRUT), known as a “Flip” CRUT, which can be set up to make lifetime payments for you or a designated beneficiary after your property is sold. IU will receive what remains in the trust after your lifetime. Another approach is to donate your property in exchange for a deferred charitable gift annuity (DCGA). In return, we pay you or a loved one a fixed amount each year for the rest of the annuitant’s life. The IU cause you chose to support will be the beneficiary of the balance after your lifetime.

What a gift of real estate can help you accomplish

Consider your time

  • Alleviate the burden of upkeep or selling a property yourself.
  • Simplify your estate and the management of your current home.

Consider your finances

  • Become eligible for a federal income tax deduction equal to the full fair market value of the property.
  • Potentially eliminate capital gains tax on your property’s appreciation.

Consider your IU legacy

  • Make an immediate, significant gift to IU.

“We followed in the footsteps of Christy’s parents, who chose the Jacobs School for their philanthropy, realizing that the arts fall short in charitable giving. They used the CRUT and CGA vehicles to maintain income and allow the remainder to pass on to the institution. Embracing the Jacobs School of Music embodies our own vision on many levels and we are proud to be a part of its future.”
–Christy Hamlin and Tom Hubbard

Christy Hamlin and Tom Hubbard used a commercial property from their business to fund a gift of life income to support the Jacobs School
.

How it works

Make a gift that creates life income

  • Let your IU development officer know that you’re considering a gift of real estate. Our team can guide you through some considerations and help you choose the best option for your situation and goals.
  • When you’re ready to take the next steps with a gift that supports life income, we will help you secure a qualified appraisal for your property, a cost for which you will be responsible.
  • The IU Foundation will work with you or your advisor to prepare the documentation based on the life income vehicle of your choice.
  • A property used to fund a CRUT will be titled to the trust, and the IU Foundation will ready the property to be sold. You will be responsible for any costs associated with maintenance and repair until the property is sold. If the property is exchanged for a DCGA, the IU Foundation will be responsible for these up-front costs.
  • Income payments from the CRUT or DCGA will begin according to the prepared documentation after the property is sold.
  • After your lifetime, the remaining balance of the trust or annuity will be used to fund the IU cause you’ve designated.