Gifts that provide you with income

01/04/2019

Charitable trusts are an ideal way to convert highly appreciated assets, such as real estate or stock, into a lifetime income—without having to pay capital gains or estate taxes—while providing a meaningful benefit to a charity such as the Banner Health Foundation or Banner Alzheimer’s Foundation.

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a Charitable Remainder Trust. In exchange for an irrevocable gift, you and/or a loved one receive payments during your lifetime or for up to 20 years, with the remainder passing to the Banner Health Foundation upon your death. Two types of Charitable Remainder Trust offer unique options:

• A Charitable Remainder Annuity Trust provides the security of a fixed annual payment. The trust pays you annually the same dollar amount you choose at the start, regardless of fluctuations in trust investments.
• A Charitable Remainder Unitrust provides a variable annual income payment based on the fair market value of the trust’s assets. The amount of your payments is re-determined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments. With a well-managed unitrust, assets can build quickly because they grow tax-free, leading to higher income and a good hedge against inflation as the value of the trust rises.

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide, Choose From 2 Win-Win Ways to Donate, available here. Then, contact Pat Elder at 602-747-4485 or patricia.elder@bannerhealth.com to discuss supporting the Foundation by setting up a charitable remainder trust.