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Charitable Remainder Annuity Trusts

How it works

You transfer cash, securities or other appreciated property into a trust.

The trust makes fixed annual payments to you or to anyone you name.

When the trust ends, the principal passes to Mercy Foundation North.

Benefits

  • You receive an immediate income-tax deduction for a portion of your contribution to the trust.
  • As long as you are one of the beneficiaries, you pay no immediate capital-gains tax on any appreciated assets you donate. A portion of the capital-gains tax is spread over your life expectancy.
  • You or your designated income beneficiaries receive stable, predictable payments for life or a term of years.
  • You can make a significant gift that benefits you now and Mercy Foundation North later.

Consider a charitable remainder annuity trust if you:

  • Want to make a major gift to Mercy Foundation North while retaining or increasing your cash flow from the assets you contribute
  • Have appreciated stocks or bonds and want to avoid the capital-gains cost of a sale
  • Prefer the stability of a fixed income
  • Want a larger charitable deduction for your gift than the unitrust option would provide
  • Have tax-free bonds and want to continue to draw tax-free income from your gift plan

Related Links

More about charitable remainder annuity trusts
Gift example


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