Charitable Remainder Trust
Solutions for Large Donations
If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. At the end of the trust term, the balance in the trust goes to the causes you care about, like your favorite MultiCare program or foundation.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Calculate your benefits
Submit a few details and see how a charitable remainder trust can benefit you.
An Example of How It Works
Susan, 60, wants to make a gift to support behavioral health care in her community by making a gift to the MultiCare Behavioral Health Foundation but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $299,845* in the year she creates and funds the trust. This deduction saves Susan $95,950 in her 32 percent tax bracket.
Finally, she knows that by naming the MultiCare Behavioral Health Foundation as a remainder beneficiary, the remaining amount—after her lifetime—will be used to support better behavioral health care in her community.
*Based on a 1.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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The MultiCare Foundations is proud to provide free and confidential estate planning services through Thompson & Associates for friends like you.
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Ready for next steps?
- Contact our gift planning team at 253-403-3093 or email@example.com for a customized illustration and to talk about how you can support your favorite MultiCare program or foundation by setting up a charitable remainder 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.