Charitable Remainder Trusts

Bowdoin sun on wrought iron gate

Charitable Remainder Trusts (CRTs) are irrevocable trusts with two separate interests: an income interest that provides the donor and/or one or more beneficiaries designated by the donor with fixed or variable payments for life or a term of years; and the remaining interest in the property that Bowdoin (and possibly other charities) will receive when the income interest stops.

CRTs are typically funded with cash, publicly-traded securities, or real estate, but can be funded with other marketable assets as well. You can also establish what is called an income exception CRT, known better as a FLIP CRT, which defines a trigger event to have the trust start income payments. Among the seven permissible trigger events are the sale of real estate or the attainment of a certain age.

How it Works

  1. Make a gift by transferring cash, security, or other property to a charitable remainder unitrust.
  2. Receive an available income tax deduction and avoid paying capital gains tax on transfers to the trust.
  3. During its term, the trust pays a percentage of its value to trust beneficiaries annually.
  4. At its end, the trust’s remainder passes to Bowdoin.

Benefits of a Charitable Remainder Trust

  • A versatile life income gift that can have either fixed or variable payments.
  • Under current law, if you itemize, a portion of the face value of your gift can qualify as a charitable deduction for federal income tax purposes.
  • When funded with appreciated assets, there is no capital gains tax either to you or the College at the time of transfer. The full value of your gift creates income for you or someone else.
  • Within limits, you are able to establish the payment rate.
  • When your CRT terminates, remaining CRT assets will be used by the College in accordance with your designated purpose.

Calculate Your Benefits

Submit a few details and see how a charitable remainder trust can help you.

See My Benefits

Bowdoin Pines Society

When you provide for Bowdoin through a charitable remainder trust, you will be welcomed into the Bowdoin Pines Society.

Dave and Mary Ellen Stevenson
Donor Story
Learn about Dave and Mary Ellen Stevenson's Charitable Remainder Trust.

Please note that we are prohibited from giving legal or financial advice and none of the information above should be interpreted as such. We encourage you to consult with your own legal counsel or financial advisor before deciding whether or not to proceed with a gift.