Charitable Remainder Annuity Trusts

A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, your spouse, and/or other beneficiaries a fixed annuity income for life or a term of years. You receive a charitable income tax deduction for a portion of your gift to the trust. No additional gifts are permitted. After the annuity trust terminates, the accumulated principal or "remainder interest" goes to The Hotchkiss School.

  • Receive stable, predictable income (particularly appealing to older donors and income beneficiaries).
  • Avoid all upfront capital gains tax on any appreciated assets you transfer to the annuity trust.
  • Receive all or partly tax-free income if your annuity trust is invested for that objective.
  • Reduce your estate tax liability by removing a large taxable asset.
  • Make a satisfying and substantial gift to The Hotchkiss School during your lifetime.


Comparison of Benefits: Unitrust and Annuity Trust

This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.


> Beneficiaries aged 72 and 70
> 28% income tax bracket
> Holding $100,000 in stock with $50,000 cost basis



Annuity Trust




Income Rate



First Year's Income



Future Income



Charitable Deduction*



*Based on a Federal Discount Rate of 3.4%.


To learn more about charitable remainder annuity trusts, Email us, complete the Information Request Form, or call us at (860) 435-3263 so that we can assist you.