Charitable Lead Trusts Personalized Care, Rooted in the Rockies

Charitable Lead Trusts

Provides For Your Loved Ones & Supports Healthcare

Do you want to benefit from the tax savings that result from supporting the Heart of the Rockies Regional Medical Center Foundation, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.

There are two ways charitable lead trusts make payments:

A charitable lead annuity trust pays a fixed amount each year to the HRRMC 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 the HRRMC Foundation go up as well.

Example Scenario

George would like to support the HRRMC Foundation and provide for his children. Following his advisor's recommendation, George funds a charitable lead annuity trust with assets valued at $800,000.

George's trust pays $56,000 (7 percent of the initial fair market value) to the HRRMC Foundation each year for 15 years, which will total $840,000. 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 $800,000 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 $800,000 outright to his children, it would have been a taxable gift.

*Assuming annual payments and a 2.4 percent charitable midterm federal rate.

We Are Ready To Answer Your Questions

You can fund your charitable lead trust with cash, real estate, securities, and more. Speak with a financial or legal advisor to make the most out of your donation. When designating HRRMC Foundation as the recipient, you will need our Federal Tax ID Number, which can be obtained by contacting Lezlie Burkley at (719) 530-2218 or Lezlie.Burkley@hrrmc.net.

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