Solutions for Large Donations
The Advantages of a Charitable Remainder Trust
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If you have built a sizeable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust.
These types of gifts do 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.
Here's a Potential Scenario
Born and raised in Franklin County, Bill and Nancy are thankful for the quality care they and their neighbors receive at Baystate Franklin Medical Center. They wanted a smart way to make a gift to Baystate Health while also saving on taxes and generating income. They own $500,000 in stock that is worth 10 times today what they paid for it a decade ago. Bill and Nancy had considered selling the stock, but did not like the idea of paying capital gains tax. Instead, they received an immediate federal income tax deduction by gifting the stock to a tax-exempt charitable remainder annuity trust. Plus, the trust provides Bill and Nancy a fixed income of $25,000 for 20 years (5 percent of the initial donation). Because stock was sold within the tax-exempt trust, Bill and Nancy avoid the $450,000 capital gains. At the end of the 20-year term, the remaining assets in the trust pass as a gift to Baystate Health to support quality health care and innovation at Baystate Franklin. Read the inspiring story of how William Russell included a gift from his trust to benefit Baystate Health Foundation.
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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 remainder 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 hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your 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.