GIFT OF REAL ESTATE TO A CHARITABLE REMAINDER UNITRUSTGIFT OF REAL ESTATE TO A CHARITABLE REMAINDER UNITRUST

Through a charitable remainder unitrust at the Lutheran Community Foundation (LCF), the donor’s gift of real estate creates a trust that makes regular payments based on a percent of the trust’s assets. These payments, which can be made to the donor or other named income recipient, can be for life, a term of up to 20 years or both. The amount remaining in the trust at the end of the trust’s term benefits charities recommend by the donor. Typically, the LCF acts as trustee for trusts established at the LCF, and in this capacity it assumes responsibility for administering all aspects of the trust, including sale of the real estate.

The gift minimum is $200,000 for a gift of real estate to a Charitable Remainder Unitrust. The donor can also make multiple additional gifts of cash, securities, and/or real estate to the trust.

Target Audience

  • Clients 50 or older, but may be younger for a term of years trust.
  • Clients interested in additional income who can withstand market fluctuations.
  • Clients with significant assets.
  • Clients interested in converting real estate into a gift that provides a stream of ongoing income.
  • Clients who wish to give real estate and bypass associated gains.
  • Clients who may wish to make additional gifts at a later date.
  • Clients who are seeking ongoing income for longterm care or wealth replacement insurance premiums.

Tax and Financial Benefits for your clients

  • Your client receives regular payments for life, term or years, or both.
  • The donor receives a charitable income tax deduction in the year of the gift based on the value according to a qualified appraisal. The cost of the appraisal is paid directly by the donor to the appraiser.
  • For gifts of long-term appreciated real estate, the annual deduction limit is 30% of the donor’s AGI.
  • Unused charitable deductions may be carried over an additional 5 years.
  • The unitrust sells appreciated assets tax-free – 100% of the gift is reinvested to produce income.

Benefits to You, the Financial Representative


Helping your clients give through the LCF not only simplifies your work, you’re also compensated for your efforts. Charitable gifts that come to the LCF through the work of Financial Representatives are invested in Thrivent investment products or American Funds, and you receive the corresponding compensation from those companies. Find out more about compensation for Financial Representatives.

You don’t need any special qualifications to facilitate gifts to the LCF, and we support you with the tools and information necessary to complete your client’s gift.


More about Charitable Remainder Unitrusts


Unitrust payout rate. In determining a payout rate, the LCF looks to various factors, including the current economy, the prevailing IRS discount rate and the age of the trust income beneficiaries. Once the percentage has been set in the signed trust document, it cannot be changed. The variable payment rate is calculated annually, based on the set percent of the overall value of the trust’s assets. Payments begin in the calendar year following sale of the property. The donor(s) and certain family members are disqualified from purchasing the property according to IRS rules.

Payment recipients. Payments can be paid to the donor, a relative or friend, and are taxable as income. There may be estate/gift tax consequences if someone other than the donor or the donor’s spouse is named as an income recipient.

How to Establish a Charitable Remainder Unitrust at the LCF

  1. Request a personalized illustration for your client using our request form or call 800-365-4172. To create a customized illustration for you and your client, we need the following information:
    • Client's name, birthdate and tax bracket.
    • Proposed gift amount, including cost basis.
  2. The Foundation sends you an illustration packet to review with your client.
  3. If your client wishes to proceed and establish a unitrust, complete and return the Charitable Remainder Trust Application and Fund Workbook, Real Estate Worksheet and Environmental Questionnaire included in the illustration packet.
  4. To ensure prompt and accurate compensation from Thrivent, complete the FR compensation form.

Resources to Support Your Work

You may also order these materials online, using our Request Materials form.

Through charitable remainder trusts, Thrivent Financial Representatives provided a charitable solution to hundreds of LCF donors – in some cases providing an income used to pay long-term care and life insurance premiums. For more information about charitable remainder trusts and other giving options available through the LCF, please call 800/365-4172.