Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Texas Scottish Rite Hospital for Children 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 Scottish Rite Hospital:
A charitable lead annuity trust pays a fixed amount each year to Scottish Rite Hospital 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 Scottish Rite Hospital go up as well.
An Example of How It Works
George would like to support Scottish Rite Hospital and provide for his children. George received a windfall amount of income 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 Scottish Rite Hospital 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 Mike Stimpson at 214-559-7886 or Mike.Stimpson@tsrh.org to talk about supporting Scottish Rite Hospital by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Scottish Rite Hospital in your plans, please use our legal name and federal tax ID.
Legal Name: Texas Scottish Rite Hospital for Crippled Children
Address: 2222 Welborn Street, Dallas, Texas 75219
Federal Tax ID Number: 75-0818178
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Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.