Navigating Trusts

1. You establish the trust with the help of your legal counsel. At this time, you name the trust’s beneficiary or beneficiaries and set the duration of the trust. The trust can be put into effect immediately or after your lifetime.
    
2. You gift assets to the trust.
    
3. Your assets are invested, and income earned is paid annually to named beneficiaries—you or your loved ones—for the term you set. Terms can be up to 20 years or over the course of one or multiple lifetimes.
    
4. Upon the trust’s termination, the remaining assets are gifted to Texas A&M University to support areas agreed upon by you and the Texas A&M Foundation.

There are two main types of payment structures for charitable remainder trusts:

1. Charitable Remainder Annuity Trusts (CRATs) – These distribute a fixed annuity amount per year; additional contributions are not allowed.
    
2. Charitable Remainder Unitrusts (CRUTs) – These distribute a fixed percentage based on the annual balance of the trust assets; additional contributions are allowed.

• Cash
• Publicly traded securities
• Real estate
• Some types of closely held stock
• Other complex assets

• Payments for life, lives or term of years
• Income tax deduction and savings for your gift
• Possible capital gains tax avoidance
• Supports Texas A&M and/or any other charitable organizations

• Want an immediate charitable deduction but would also like to provide a steady stream of income for yourself or loved ones.
• Want to weave a trust into your estate plan to efficiently manage inheritance to heirs and also leave charitable gifts.
• Want to support Aggieland by funding scholarships, research, world-renowned faculty members, campus building projects and more—WHOOP! 

1. You establish the trust with the help of your legal counsel. At this time, you name the trust’s beneficiary or beneficiaries and set the duration of the trust. The trust can be put into effect immediately or after your lifetime.
    
2. You gift assets to the trust.
    
3. Your assets are invested, and income earned is paid annually to the Texas A&M Foundation to support your selected passions for the term you set. Unlike a charitable remainder trust, charitable lead trusts have much more flexible terms because payments are first made to the charity or charities you select. Terms are not held to the same mandatory 20-year time limit if you choose the fixed term option. There is also no minimum or maximum payment required to the charitable beneficiaries as long as payments are made annually.
    
4. Upon the trust’s termination, the remaining assets are gifted to your named beneficiaries (typically yourself or loved ones).

There are two main types of payment terms for charitable lead trusts:

1. Charitable Lead Annuity Trusts (CLATs) – These distribute a fixed annuity amount per year.
    
2. Charitable Lead Unitrusts (CLUTs) – These distribute a fixed percentage based on the annual balance of the trust assets.

• Cash
• Publicly traded securities
• Real estate
• Some types of closely held stock
• Other complex assets

• Reduces income, estate and gift taxes
• Provides immediate support to Texas A&M
• Donor can see the gift's impact during their lifetime (if the trust terms begin during the donor's life)

• Need a solution to reduce, or potentially eliminate, estate and gift taxes.
• Experience a windfall through inheritance or a major asset sale and want to use these funds later in life for retirement or to pass to loved ones, but also want to make a significant charitable gift during your lifetime.
• Are considering creating a private or family foundation.
• Want to see your gift impact Texas A&M during your lifetime, but also want to use your assets to support yourself or your loved ones in the future.