Charitable Remainder Unitrusts: A Versatile Life-Income Option Exploring the benefits of this popular gift

Charitable remainder unitrusts (CRUTs) are a popular option with MIT donors for several reasons. This gift arrangement, in which the donor(s) make an irrevocable gift of $100,000 or more into a trust, establishes income for you and/or other beneficiaries. It’s also a great way to support MIT: at the end of the trust’s term, the remainder becomes available to MIT for the purpose you have selected. Here are a few specific benefits of a unitrust gift.

Smart tax moves. CRUT donors qualify for an income tax deduction in the year of their gift, and avoid capital gains tax on the sale of the appreciated assets gifted to the trust.

Invest alongside the MIT endowment. The MIT Investment Management Company manages the MIT endowment, mainly in equities and heavily weighted toward private equity, real estate, and marketable alternatives, with the goal of maximizing total return while minimizing risk. This presents the opportunity to access assets commonly unavailable to the individual investor.

Add to your CRUT at any time. You can grow your CRUT to increase your impact at MIT and the payout to your beneficiaries by making additional gifts to it during your lifetime or through your estate.

“We contribute to two CRUTs annually–the income they generate is part of our retirement budget. After we are gone, the capital from the CRUTs will be added to our scholarship fund to enhance its capacity. We continue to give through the Office of Gift Planning because we want to be part of MIT’s mission to make the world a better place for all of us, now and for the future. My story is similar to many alums. MIT provided many of us with the tools to expand and improve our personal and family lifestyle. For me individually, I feel a commitment to use my time, ability, and assets to enable MIT to do the same for future generations.”

―Mark Grebler ’63, ’64, SM ’65, pictured above with his spouse, Kathy Grogan.

Contact the MIT Office of Gift Planning

This story originally appeared in the Fall 2024 issue of the Gift Planning at MIT e-newsletter. This information is up to date as of August 2024. Information in the newsletter should not be considered legal or financial advice. We encourage you to discuss these options with your advisor.