Discover a Gift That Gives Back
Charitable Remainder Trusts
Looking for a way to give the School of Medicine or Stanford Health Care a significant gift? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to explore a charitable remainder trust.
Benefits of a charitable remainder trust include:
- Potential for a partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
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. Your payment amounts vary each year depending on the annual valuation of the trust assets.
Check Out This Potential Scenario
Susan, 75, wants to make a gift to the School of Medicine or Stanford Health Care but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% 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% tax bracket.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Wendy Chou or Carol Kersten at 650.723.6560 or firstname.lastname@example.org to talk about supporting the School of Medicine or Stanford Health Care by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- 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
Federal Tax ID Number: 94-1156365
Gifts to Stanford Health Care:
Legal Name: Stanford Health Care
Federal Tax ID Number: 94-6174066