Charitable Remainder Trust

Solutions for Large Donations

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. At the end of the trust term, the balance in the trust goes to the Lucile Packard Foundation for Children’s Health.

These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

The Fatjos’ Gift Gives Hope to Many While Providing a Stable Income for Life

Debby and Michael Fatjo used real property to create a gift that provides them stable income for life and aligns with their desire to support children’s health.

An Example of How It Works

Woman with grandchild Susan, 75, wants to make a gift to the Lucile Packard Foundation for Children’s Health but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360* in the year she creates and funds the trust. This deduction saves Susan $92,915 in her 32% tax bracket.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

Contact the Office of Gift Planning at (650) 461-9990 or giftplanning@LPFCH.org to talk about supporting the Lucile Packard Foundation for Children’s Health by setting up a charitable remainder trust.
Seek the advice of your financial or legal advisor.
If you include the Lucile Packard Foundation for Children’s Health in your plans, please use our legal name and federal tax ID.

Legal name: Lucile Packard Foundation for Children’s Health
Address: 400 Hamilton Avenue, Suite 340 | Palo Alto, CA 94301
Federal tax ID number: 77-0440090

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.