Protect Your Assets
Charitable Lead Trusts Offer You Options
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You can benefit from the tax savings that result from supporting Baystate Health Foundation 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 Baystate Health:
A charitable lead annuity trust pays a fixed amount each year to Baystate Health 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 Baystate Health go up as well.
Here's a Potential Scenario
Marcus would like to support Baystate Health and provide for his children. Marcus received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, Marcus funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Marcus's trust pays $70,000 (7 percent of the initial fair market value) to Baystate Health each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Marcus. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, Marcus receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
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- Contact Kylie Johnson at 413-794-7789 or firstname.lastname@example.org to talk about supporting Baystate Health by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- When you include Baystate Health in your plans, please use our legal name and federal tax ID.
Legal Name: Baystate Health Foundation, Inc.
Legal Address: 759 Chestnut Street, Springfield, MA 01199
Mailing Address: 280 Chestnut Street, Springfield, MA 01199
Federal Tax ID Number: 04-3549011
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.