August 1st, 20115:37 pm @




“Planned Giving”, including the popular Charitable Remainder Trust, a tax-friendly donation option long offered by American universities, is now available to Pembrokians.


This exciting initiative by a consortium of Oxford Colleges, launched at the Oxford University North American Reunion in New York in April, is being chaired by Alice Gosling of Lincoln College and by Pembroke’s own Bursar, John Church.


The Oxford College consortium has established a partnership with the charitable division of US Bank.  College is now able, through US Bank, to provide advice on a range of vehicles enabling one to leave money to the College, all the while retaining substantial benefits for oneself.


Probably the most interesting and attractive of these vehicles, especially for those who are “income poor but asset rich”, is the Charitable Remainder Trust, which gives relief against income, capital and estate taxes, whilst providing a continuing life income to the donor.


John Barlow, of College’s Development Office, says, “if you want to secure your income for life, reduce your tax liabilities and benefit the College when you die, this could be an ideal vehicle.”


How does the Charitable Remainder Trust work?  John provided this example:

“If a 70 year old alumnus in the 35% tax bracket establishes a 6% Unitrust with  $100,000 of appreciated stock, originally purchased for $25,000 and paying a 2% dividend, he will receive an immediate charitable tax deduction of $47,990, a Capital Gains tax saving of $11,250 and be paid $6,000 per year for life. On his death, the Trust Capital will pass tax free to the College.”


Got that?  If you have any questions, please contact John Barlow.