A donor sold his farm without paying excessive taxes by transferring the farm to a unitrust through LHM. This way, he paid no capital gain tax and enjoyed other tax benefits. The unitrust provides regular, lifetime income payments. When he is called home to heaven, proceeds from the unitrust will support LHM's ministries.

Gift Annuity  |  Charitable Remainder Unitrust  |  IRA/Retirement Plans  |  Life Insurance

CHARITABLE REMAINDER UNITRUST

A unitrust is a life income agreement that is designed to give you:

• Attractive income payments
• Considerable tax savings
• The satisfaction of knowing your gift will help Lutheran Hour Ministries touch the lives of people who need the Gospel after you are in Heaven.

A unitrust is an irrevocable agreement by which you transfer cash, securities, or real estate into trust. The asset within the trust is then sold and reinvested to provide income. The unitrust pays this income to you and your loved ones for a period of time. Since the ultimate beneficiary of your unitrust is Lutheran Hour Ministries, you will receive a number of current and future benefits:

Current Benefits

• Bypass of capital gains tax when appreciated property is sold by the Unitrust;
• An attractive current income; and
• A charitable income tax deduction for the year the gift was made.

• Property in a Unitrust is not subject to probate. This may reduce administrative costs;
• Reduction of possible estate taxes; and
• Income for loved ones after you join the Lord in Heaven.

Different Types of Unitrusts:

• Charitable Remainder Unitrust (Straight Payment)
  A charitable remainder unitrust is the most common type of unitrust. You and the trustee agree upon an income percentage when the unitrust is first established (according to IRS regulations). Because the value of the trust fluctuates in gains and losses, your payments will also vary accordingly.
  
  
• Charitable Remainder Annuity Unitrust
  Distributions from an annuity trust are made at a fixed rate chosen when the trust is created. This rate is determined based upon the age(s) of the donor(s) and IRS guidelines. Income is paid from the earnings and possibly principal of the trust. Therefore, income distributions are fixed and do not fluctuate.
  
  
• Charitable Remainder Unitrust With Real Estate (FLIP)
  When establishing a flip unitrust with real estate, payments have two forms. Initially, until the property is sold, the trust may only pay from earnings. This is to protect you in the situation where the property is not immediately sold. Upon the sale of the property, the trust "flips" to a straight payment unitrust (as described above).

For more information on IRA beneficiary designations, click here or call 1-877-333-1963.