You can benefit from the tax savings that result from supporting Le Bonheur Children's Hospital 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 Le Bonheur Children's Hospital:
A charitable lead annuity trust pays a fixed amount each year to Le Bonheur Children's Hospital 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 Le Bonheur Children's Hospital go up as well.
Discover MoreView My Guide
An Example of How It Works
George would like to support Le Bonheur Children's Hospital 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% of the initial fair market value) to Le Bonheur Children's Hospital 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 $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.View My Free Guide
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Prepare for the Future
Create a secure plan for you and your loved ones with our FREE Personal Estate Planning Kit.Download My Kit
- Contact Cathy Wilson at 901-287-5575 or firstname.lastname@example.org to talk about supporting Le Bonheur Children's Hospital by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Le Bonheur Children's Hospital in your plans, please use our legal name and federal tax ID.
Legal Name: Le Bonheur Children's Hospital Foundation
Address: P.O. Box 41817, Memphis, TN 38174-1817
Federal Tax ID Number: Please contact us for our federal tax ID number.