Charitable Lead Trust
Protect Your Assets
If you want to make an impact now to the MultiCare program or foundation you care about 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 the non-profits of your choice, like MultiCare, for a period of time. When the term is up, the remaining trust passes back to you or to your family or other beneficiaries you select.
There are two ways that charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to the non-profits you've selected and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year to the non-profits you've selected 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.
Calculate your benefits
Submit a few details and see how a charitable lead trust can benefit you.
An Example of How A Grantor Lead Trust Works
George would like to support the work of the MultiCare Behavioral Health Foundation and receive tax benefits. He received a windfall amount of income and needs a large income tax deduction to offset it. Following his advisor’s recommendation, George funds a grantor 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 $770,960. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,637,530 at the end of the trust term.
*Based on a 2.0% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Get free planning help
The MultiCare Foundations is proud to provide free and confidential estate planning services through Thompson & Associates for friends like you.
Not sure how to begin planning?Download a free personal estate planning kit
Ready for next steps?
- Contact our gift planning team at 253-403-3093 or email@example.com 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.