 Charitable Remainder Unitrusts  |
Charitable Remainder Unitrusts
Fund Development Office
A gift that pays you life income.
A Charitable remainder unitrust is a highly advantageous way to benefit yourself and Sikh Dharma. You benefit by receiving life income from your charitable gift. Then after your demise the trust fund belongs to Sikh Dharma.
The federal government gives tax benefits to encourage you to support Sikh Dharma through a unitrust. A donor’s prime motive for creating a unitrust is to further our Dharma’s work and goals - not to save taxes. However, having decided to contribute, you’ll want to plan your gift to maximize tax and financial benefits. Creating a unitrust - keeping attractive income for life - can save estate taxes and probate costs as well as substantial income taxes.
The unitrust in brief. A unitrust pays you an amount each year determined by multiplying a fixed percentage (that you select at the outset) times the fair market value of the trust assets each year. You get an immediate income tax charitable deduction, and it is often possible for part of your payments to be taxed more favorably than income you are now earning on your assets. You rid yourself of investment worries.
Creating a unitrust. A donor irrevocably transfers money, securities or both to Sikh Dharma, which pays the donor income for life. The trust can also provide income for a survivor (e.g., a spouse) for life. Then the trust assets become the sole property of Sikh Dharma.
Income tax savings. A donor who itemizes gets a sizable income tax charitable deduction in the year he or she creates the unitrust. You may deduct up to 50% of your adjusted gross income when the unitrust is funded with money and the charitable beneficiary is a religion. Any "excess" is deductible over the five following years- up to 50% of each year’s adjusted gross income.
The type of trust best for you and your family depends upon your particular situation. We would be happy to furnish you with more information on the ways the many charitable trusts can help you.
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Jasbir Singh Saini M.D.
We would like to honor Dr. Jasbir Singh Saini, Phoenix, for supporting the legacy of Sikh Dharma. He has used the vehicle of Life Insurance as a mode for gifting to Sikh Dharma. He has made a significant bequest to be eventually gifted to a trust for the purposes of furthering Sikh Dharma and the development of Gurdwaras.
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The staff of the Fund Development Office would be pleased to consult with you about the various gift and fund raising alternatives for Sikh Dharma and 3HO.
May God bless each and everyone of you for your selfless service and tax deductible contributions in February and March. Keep up the good work.