Planned Giving

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Be remembered for your love of New York City by making a legacy gift to Robin Hood as we fight to to elevate New Yorkers out of poverty.

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Charitable Remainder Annuity Trust

What is a charitable remainder annuity trust?

A charitable remainder annuity trust can help you maintain or increase your income for life while making a significant gift to Robin Hood. The trust payments are the same amount each year, offering the security of fixed income.

How It Works

  1. You irrevocably transfer cash, securities, or other property to a trust.
  2. You receive an income tax deduction and pay no capital gains tax. During its term, the trust pays a fixed amount each year to you or to anyone you name.
  3. When the trust ends, its remaining principal passes to Robin Hood.

Why It's Right for You

A charitable remainder annuity trust helps you:

  • Maintain or increase your income.
  • Secure predictable payments for life or a term of years.
  • Save income taxes or capital gains taxes.
  • Choose the person who administers your gift and guides its investments.
  • Make a generous gift to Robin Hood in the amount of $100,000 or more, or extend your gift to benefit multiple charities.


Frequently Asked Questions

Yes, it is a tax-exempt trust governed by an irrevocable trust agreement. You choose the trustee who is responsible for administering your annuity trust and guiding the investment of its assets.

Yes. Once you transfer assets to the trust, you cannot change your mind and get the assets back. This requirement ensures that whatever value remains in your annuity trust when it ends will go to support Robin Hood.

Each year, your annuity trust will pay a fixed dollar amount to one or more income beneficiaries you name –  such as you, or you and your spouse.

You choose the amount that your annuity trust must distribute each year. The payment amount must be at least 5% of the initial value of your trust. A payout of 5% to 6% is typical. Payments are usually made in annual, semiannual or quarterly installments.


You choose the amount that your annuity trust must distribute each year. The payment amount must be at least 5% of the initial value of your trust. A payout of 5% to 6% is typical. Payments are usually made in annual, semiannual or quarterly installments.

While most annuity trusts last for one or two lives, other terms are possible. An annuity trust can last for more than two lives, for a specific length of time of up to 20 years or for a combination of lives and years.

  • Earn an immediate income tax charitable deduction.
  • Avoid capital gains tax.
  • May reduce estate taxes and probate costs.

You will receive an income tax charitable deduction in the year of your gift. If you cannot use the entire deduction that year, you may carry forward your unused deduction for up to five additional years.

If you give appreciated securities to fund your charitable remainder annuity trust, you will not pay any capital gains tax when you make your gift. In addition, because a charitable remainder annuity trust is a tax-exempt trust, it will not pay any capital gains tax if the trustee sells appreciated assets that you have donated. This means that your trustee will be able to reinvest the full value of these assets.

By removing the gift assets from your estate, you may also reduce estate taxes and probate costs when your estate is settled. The amount of these savings will depend on the size of your estate and on estate tax law in force at the time your estate is settled.

The taxation of annuity trust payments depends on the trust’s past distributions and investment performance. Income from an annuity trust is typically taxed as ordinary income. If the trust is funded with appreciated assets, a portion of the payments could be taxed at lower capital gains tax rates in some years. It is even possible for a portion of the payments to be tax-free in years when there is not enough ordinary income and capital gains income to make the payments.

When your annuity trust ends, all remaining principal will become available to support Robin Hood, if you so choose.

You decide who will get the payments from your annuity trust. Usually, this will be you, or you and your spouse. You can, however, select other people to receive the payments. For example, you may wish to provide income for parents, a sibling or children.

The following assets make excellent sources for funding your charitable remainder annuity trust:

  • Cash that you currently have in a savings account, bank CD, money-market fund or other safe but low-yielding investment.
  • Securities, especially highly appreciated securities.

Learn More

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Contact us

We would love to speak with you and share information on gift strategies that can help you support Robin Hood and provide benefits to you and your family.

Austin Wrubel
Director of Planned Giving
212-844-3521
wrubel@robinhood.org

If you have already put Robin Hood in your estate plans, please let us know.