Provide for Your Loved Ones and Our Patients
Charitable Lead Trusts Offer You Options
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You can benefit from the tax savings that result from supporting your favorite MultiCare foundation or program close to you without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
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 Good Samaritan Foundation, Mary Bridge Children's Foundation, MultiCare Health Foundation or South King Health Foundation and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year 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 Good Samaritan Foundation, Mary Bridge Children's Foundation, MultiCare Health Foundation or South King Health Foundation go up as well.
An Example of How It Works
George would like to support South King Health Foundation and provide for his children. Following his advisor's recommendation, George funds a charitable lead annuity trust with assets valued at $2,500,000.
George's trust pays $175,000 (7 percent of the initial fair market value) to South King Health Foundation each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.
His gift tax deduction is $2,182,775* against the $2,500,000 of assets. Therefore, only the difference ($317,225) is subject to gift tax, which is offset against his lifetime gift tax exclusion. After that, the remaining trust assets and all of their growth will pass to his family at zero additional cost in gift and estate taxes. Had George given the $2,500,000 outright to his children, it would have been a taxable gift.
*Assuming annual payments and a 2.4 percent charitable midterm federal rate.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Make Your Annual Gift Last Forever
Each year we rely on your gift, along with many others, to help us meet our goals and make a difference in the lives of others. To ensure that our programs and funding do not suffer, please take time now to consider leaving an endowed gift—a generous statement that will truly last forever.
|If your annual gift is:||Perpetuate it by giving:*|
*At a 4 percent endowment spending level, 25 times an annual gift amount equals an endowed perpetual gift.
Ready for Next Steps?
- Contact Frank Colarusso, Gift Planning Manager, at 253-403-1262 or email@example.com or Shelley Buck, Sr. Administrative Assistant, at 253-403-3093 or firstname.lastname@example.org to talk about supporting Good Samaritan Foundation, Mary Bridge Children's Foundation, MultiCare Health Foundation or South King Health 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 Good Samaritan Foundation, Mary Bridge Children's Foundation, MultiCare Health Foundation or South King Health Foundation in your plans, please refer to our sample bequest language and use our legal name and federal tax ID number.