Example of Flip CRUT

How it works:

  • You transfer cash, securities, or other property to a trust.
  • You receive an income tax deduction and pay no capital gains tax.
    • For the first part of its term, the trust pays the lesser of its net income and a percentage of its value each year to you or to anyone you name. The trust may make up payment shortfalls in later years during this period. Once the trust "flips" for a reason you designate, it simply pays a percentage of its value each year for the remainder of its term.
  • When the trust ends, its remaining principal passes to Whitman College.

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