How Much Is That Gift CRT Worth?How Much Is That Gift CRT Worth?
When Brian, a successful young North Carolina businessman, notified the planned giving department at a mid-size Southern university that he had irrevocably named them as the remainder beneficiary on his $1 million charitable remainder unitrust, the fundraisers gave each other some high-fives. But the celebration was muted by the fact that the university estimated it would take more than 30 years to
Roger D Silk
When Brian, a successful young North Carolina businessman, notified the planned giving department at a mid-size Southern university that he had irrevocably named them as the remainder beneficiary on his $1 million charitable remainder unitrust, the fundraisers gave each other some high-fives.
But the celebration was muted by the fact that the university estimated it would take more than 30 years to receive its remainder interest. Thirty years is a long time to wait.
As James Lintott, my Reston, Va.-based colleague at Sterling Foundation Management, puts it: “Illiquid assets, like CRT remainder interests, are nice to have, but they don't pay the rent. Most charities don't like to hold them if they have any choice. It is common f...
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