Charitable Lead Trusts

How it works

You contribute cash, securities or other property to a trust.

The trust makes fixed annual payments to the Mercy Foundation for a specified term of years.

When the trust ends, the remaining principal goes to your heirs.

Benefits

• You receive a gift-tax deduction for the present value of the annuity payments to the Mercy Foundation.
• The annuity payments and the term of the trust can be specified to help reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
• All trust appreciation will be tax-free to your heirs.
• You can use your available estate-tax credit to further reduce taxes on transfers to your heirs.
• You can make a significant gift to the Mercy Foundation now and reduce the taxes due on transfers to your heirs later.

Consider a charitable lead trust if you:

• Have appreciating assets that you want to pass on to the next generation
• Want to reduce your gift and estate taxes
• Plan to preserve the value of your estate, not increase your income or reduce your income tax
• Want to give your family more of your estate over a longer period of time
• Want your gift to provide a stream of income to the Mercy Foundation

Related Links

More about charitable lead trusts
Gift example

For assistance with this gift plan, please complete the request information form or contact the Mercy Foundation at (209) 564-4200 or e-mail to MercyFoundationMerced@DignityHealth.org.