Gifts that Provide Income

Charitable Remainder Unitrust (Standard CRUT):

You can transfer assets to the trust, which may be controlled by Highline Medical Center Foundation or a third party. Income is passed to you as long as you live or no more than 20 years. The trust distributes 5-50% of its assets each year (fixed rate established when creating trust) to you. Highline Medical Center Foundation receives the amount left in the trust after you die, or after a set number of years. The benefits to you, the donor, includes the following:

• Beneficiary may be changed if provided for in trust instrument

• Income tax deduction for charitable remainder interest

• Capital gains, and estate tax reductions

• You, the donor, may make additional contributions

Example: Mrs. Smith decides to give stock worth $100,000 is such a way that she receives an annual income of $6%, or $6,000. The stock originally cost $40,000 and currently yields 1%, or $1,000. As a result, she greatly increases her income, avoids capital gains tax on the $60,000 increase in value at the time of her gift, makes a meaningful gift, and enjoys an income tax deduction of almost $30,000.

Charitable Remainder Annuity Trust

Same as Standard CRUT, except that annual payment is a fixed amount that is a % of the trust’s original value. No additional contributions are permitted.

Pooled Income Fund

You and other donors contribute to a pooled investment fund and receive life income that varies year-by-year according to the fund’s return. Highline Medical Center Foundation retains charitable remainder interest upon your death and may withdraw it from the pool for use to further our mission in the community. The benefits to you, the donor, includes the following:

• Provides income tax deduction for value of remainder interest

• Reduced estate and capital gains taxes

• Low contribution levels required

• Additional contributions are permitted