Charitable Remainder Trust

Charitable Remainder Annuity Trust

The Charitable Remainder Annuity Trust is a way to make a charitable gift now and also have income for life.

How does a Charitable Remainder Annuity Trust work?

You, as the donor, will irrevocably transfer money, property or stock to Waukesha Memorial Hospital Foundation. At the inception of the Trust, we will agree upon a fixed rate of return (minimum 5%). Waukesha Memorial Hospital Foundation invests those assets and pays you a set income for life. Upon your (and your co-beneficiary's, if applicable) passing, the Foundation will receive the residue of the Trust.

Minimum gift amount

The minimum amount for a Charitable Remainder Annuity Trust is $25,000.

What are the benefits of a Charitable Remainder Annuity Trust?

  • A charitable tax deduction
  • Avoidance of all capital gains, when using appreciated stock for the gift
  • Set rate of return (minimum 5%)
  • May be set for one or more beneficiaries
  • Possible reduction in estate taxes
  • You may designate more than one charitable beneficiary of the proceeds of the Trust
  • Make your gift to the foundation now and bypass probate

What's the difference between an Annuity Trust and a Unitrust?

An Annuity Trust pays income based on a fixed percentage (agreed to when the Trust is created) of a fixed amount. This means that the donor will always know exactly what the income will be - the amount will never change. Because of this, older donors, who count on the security of a fixed income, may like this kind of a Trust better.

A Unitrust  pays income based on a fixed percentage (also agreed to when the Trust is created), but on a variable amount. So, if the Unitrust investments perform well, income may be increased. This also allows for long-term income growth. Because of this, a Unitrust works well for younger donors (aged 50-65). In addition, only a Unitrust can be used when a gift of property is the asset used to fund the Trust.

How can I find out more?

For more information on this giving option, contact Nancy Seidl Nelson.  We would be happy to send you sample calculations explaining the income and tax benefits of such a gift, with no obligation.