Charitable Remainder Trusts

Discover a Truly Significant Gift

Next Steps

  1. Contact Mayo Clinic Office of Gift Planning at giftplanning@mayo.edu or 1-800-297-1185 to talk about supporting Mayo Clinic by setting up a charitable remainder trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Mayo Clinic in your plans, please use our legal name and federal tax ID.

Legal Name: Mayo Clinic
Address: 200 First Street SW, Rochester, MN 55905
Federal Tax ID Number: 41-6011702

If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust. It's one way to provide a truly significant gift to Mayo Clinic and help us set a new world standard in care.

Benefits of a charitable remainder trust include:

  • A partial charitable income tax deduction
  • Potential for increased income
  • Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

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.

Next Steps

  1. Contact Mayo Clinic Office of Gift Planning at giftplanning@mayo.edu or 1-800-297-1185 to talk about supporting Mayo Clinic by setting up a charitable remainder trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Mayo Clinic in your plans, please use our legal name and federal tax ID.

Legal Name: Mayo Clinic
Address: 200 First Street SW, Rochester, MN 55905
Federal Tax ID Number: 41-6011702

Check Out This Potential Scenario

Woman smiling

Susan, 60, wants to make a gift to Mayo Clinic but would also like more income in the future.

Gift: Susan creates a charitable remainder unitrust with annual lifetime payouts to her equal to 6 percent of the fair market value of the trust assets. She funds the trust with $250,000 in stock, which she originally bought for $85,000. The stock paid her annual dividends of $5,000.

Benefits to giver: Susan receives $15,000 the first year from the trust, tripling her previous income. Subsequent payout amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $81,305 in the year she creates and funds the trust. This deduction saves Susan $22,765 in her 28 percent tax bracket.

Note: If Susan had sold the stock and not given it to the trust, she would not have received the charitable deduction, and she would have paid an additional $24,750 in capital gains tax.

Benefits to the organization: At the end of the trust term (in this case, after Susan's lifetime), we are projected to receive more than $300,000 to continue our charitable work, based on 7 percent growth of the trust's assets.

*Based on annual payments and a 2.4 percent charitable midterm federal rate.

Learn How to Fund It

You can use the following assets to fund a charitable remainder trust:

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When making a bequest, it is important to name precisely the organizations you intend to benefit. By avoiding a common name for an organization, you ensure your donation reaches its intended beneficiary. Following is the appropriate language to use when including Mayo Clinic in your estate plans.

"I give, devise and bequeath to Mayo Clinic, a not-for-profit organization, located in Rochester, Minnesota, the sum of (or % of my estate), (or other personal real property herein described) to be used for (designated purpose) or its general programs in medical education and research as it shall determine."

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

The official name to be used for all outright and deferred gifts is MAYO CLINIC.

Bequests are generally worded: "I give, devise and bequeath to Mayo Clinic, a not-for-profit organization, located in Rochester, Minnesota, the sum of (or % of my estate), (or other personal real property herein described) to be used for (designated purpose) or its general programs in medical education and research as it shall determine."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Mayo Clinic or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate, or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, farm, commercial property or undeveloped land.

A charitable remainder 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.

You give assets to a trust that pays Mayo Clinic set payments for a number of years, which you choose. The longer the length of time, the better the gift tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and receive an immediate federal income tax charitable deduction. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Mayo Clinic as a lump sum.

You fund this trust with cash or appreciated assets—and receive an immediate federal income tax charitable deduction. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Mayo Clinic as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Mayo Clinic where you agree to make a gift to Mayo Clinic and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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