Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at a MultiCare program or foundation and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to a MultiCare program or foundation for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.

There are two ways that charitable lead trusts make payments to a MultiCare program or foundation:

A charitable lead annuity trust pays a fixed amount each year to a MultiCare program or foundation and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to a MultiCare program or foundation based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to a MultiCare program or foundation go up as well.

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.

Calculate Your Benefits

Submit a few details and see how a charitable lead trust can benefit you.

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An Example of How It Works

Father smiling with children George would like to support a MultiCare program or foundation and receive tax benefits. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George’s trust pays $60,000 (6% of the initial fair market value) to a MultiCare program or foundation each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

Contact our gift planning team at 253-403-1264 or plannedgiving@multicare.org to talk about how you can support your favorite MultiCare program or foundation by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor. (Need an advisor? Look here for advisors familiar with MultiCare foundations and services.)
If you include a MultiCare program or foundation in your plans, please refer to our sample bequest language and use our legal name and federal tax ID number.
If you have already named a MultiCare program or foundation in your plans, please let us know so that we can carry out your wishes as intended and thank you for your gift.