Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Mercy Medical Center without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to Mercy:
A charitable lead annuity trust pays a fixed amount each year to Mercy and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to Mercy go up as well.Watch How It Works
An Example of How It Works
George would like to support Mercy and provide for his children. George received a large amount of income when his parents passed away recently and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to Mercy each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
- Contact Lorrie Erusha CFRE, MOL at 319-369-4768 or LErusha@mercycare.org to talk about supporting Mercy by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Mercy in your plans, please use our legal name and federal tax ID.
Legal Name: Mercy Hospital, Cedar Rapids, Iowa, Endowment Foundation, Inc.
Address: 701 10th St. SE, Cedar Rapids, IA 52403
Federal Tax ID Number: Please contact us for our federal tax ID number.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
Lorrie Erusha CFRE, MOL
Phone: 319-369-4768, LErusha@mercycare.org
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