A charitable lead unitrust is a separate taxable trust governed by an irrevocable agreement that pays Rochester Regional Health a fixed percentage of its value (determined annually) each year for the duration of its term. This means as the value goes up, so will your payments.
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?
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Example
Joy, 60, is financially secure. She has been wanting to make a major gift to Rochester Regional Health for some time, but has hesitated to part with her assets because of two young grandchildren for whom she'd like to eventually provide.
Joy is delighted to learn that funding a charitable lead unitrust frees her up to make that long-shelved gift to Rochester Regional Health and still take care of her grandchildren when they’re older.
Joy creates a $1 million trust that will pay six percent of its value (revalued annually) to Rochester Regional Health each year, for 25 years. By making the trust term 25 years long, her grandchildren won’t benefit from her assets until they are in their early 30s.