Bruce and Rachel Siegel, Planning on a Cure: The Benefits of a Charitable Remainder Unitrust

The Benefits of a Charitable Remainder Unitrust

(June 2017) Bruce and Rachel Siegel of New York City are both passionate about the Diabetes Research Institute — an organization they believe will discover the cure for diabetes. Their daughter, Sara, 32, was diagnosed with type 1 diabetes at age 4.

“If I had been a doctor, I’d be trying to find a cure for Sara,” said Bruce, who serves on the National Board, co-chairs the DRIF’s Northeast Region Board, and has served on the DRIF’s National Planned Giving Committee. Bruce and Rachel still remember an unforgettable tour of the DRI. “We were blown away by the dedication of these world-class researchers,” Rachel said.

While the Siegels have participated in a number of the DRI Foundation’s fundraising events in Florida and New York, they keep finding new ways to become even more engaged and to get others involved.

Bruce has given financial advice to his clients throughout his career as Executive Vice President and General Counsel of First Long Island Investors, LLC, a boutique wealth management firm and family office for high net worth individuals and families. He recently decided to take a bit of his own advice by creating a Charitable Remainder Unitrust (CRUT) to benefit the DRIF.

A CRUT combines a donation and an investment. The donor establishes a trust and contributes assets, which are then invested. It provides a lifetime income to the beneficiary (usually the donor), while the balance remaining in the trust after the beneficiary dies goes to a charity, such as DRIF. The income is a set percentage of the value of the trust assets, recalculated annually.

“I have recommended CRUTs to clients, and thought ‘Hey, this would make sense for me!’” Bruce explained. “I get the diversification I want without having to pay a substantial tax today, and DRIF receives the assets remaining in the CRUT after my wife and I are no longer here. On top of that, we get a tax deduction, too.”

A CRUT works best if you have a highly appreciated asset (and a charitable intent). “You can pay today as much as 35 cents in taxes on each dollar of gain if you sell the appreciated asset or give the assets to the DRIF after you die and pay no tax today,” Bruce said. “It’s being smart in addition to being good. With a cause as worthy as the DRIF, this was an easy decision.”

Watching their daughter live with the challenges of type 1 diabetes is the only inspiration they need to continue their support.

“Nothing would make us happier than seeing the world-class team at the DRI cure type 1 diabetes and focus their efforts on another disease,” Rachel said.

What are the Benefits of a Charitable Remainder Unitrust?

  • Income for life which is often greater than the yield of the contributed assets
  • A considerable tax deduction
  • Avoid paying capital gains tax on long-term appreciated securities
  • Make a significant gift to the DRI Foundation

Get more details by calling: 1 (800) 321-3437.

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