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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