A charitable lead annuity trust is a separate taxable trust governed by an irrevocable agreement that pays Rochester Regional Health a fixed amount – of your choosing – each year for the duration of its term. When your trust ends, the remaining principal will be transferred to your family or designated heirs.
Is a charitable lead annuity trust right for you?
Here are some simple questions to help you decide:
- Do you have substantial assets that you do not need for your own financial security?
- Do you want to provide immediate support to Rochester Regional Health?
- Would you consider a gift of $25,000 or more?
- Do you want to provide for your heirs?
- Do you want to save on gift and estate taxes, as well as probate costs?
Show more details
Example
Don spent his career building a successful manufacturing business, which he sold a few years ago for $10,000,000. He and his wife, Ann, have three children who are in their 30s. Don has been reviewing his estate plan with an eye toward adding a major gift to Rochester Regional Health. Funding a charitable lead annuity trust offers an excellent way for Don to provide generous support to Rochester Regional and pass assets to his three children. Don chooses to create a $2,000,000 trust that will pay $130,000 to Rochester Regional each year for 20 years.