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Provide for Your Loved Ones and the School of Medicine or Stanford Health Care

Charitable Lead Trusts

Do you want to benefit from the tax savings that result from supporting the School of Medicine or Stanford Health Care, 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 School of Medicine or Stanford Health Care 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 School of Medicine or Stanford Health Care go up as well.

Watch How It Works

Check Out This Potential Scenario

Father smiling with children George would like to support the School of Medicine or Stanford Health Care and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to the School of Medicine or Stanford Health Care each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

Next Steps

  1. Contact Jamie Downes or Carol Kersten at 650.723.6560 or pgmed@stanford.edu to talk about supporting the School of Medicine or Stanford Health Care by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the School of Medicine or Stanford Health Care in your plans, please use the appropriate legal name and Federal Tax ID.

Gifts to Stanford University School of Medicine:
Legal Name: The Board of Trustees of the Leland Stanford Junior University
Address: California
Federal Tax ID Number: 94-1156365

Gifts to Stanford Health Care:
Legal Name: Stanford Health Care
Address: California
Federal Tax ID Number: 94-6174066

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Personal Estate Planning Kit

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A charitable bequest is one or two sentences in your will or living trust that leave to Stanford University School of Medicine or Stanford Health Care a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Stanford University School of Medicine or Stanford Health Care, a nonprofit corporation currently located at California, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the School of Medicine or Stanford Health Care or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder 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.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the School of Medicine or Stanford Health Care as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the School of Medicine or Stanford Health Care as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the School of Medicine or Stanford Health Care where you agree to make a gift to the School of Medicine or Stanford Health Care and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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