Protect Your Assets
If you want to make an impact now at Mayo Clinic and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to Mayo Clinic for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.
There are two ways that charitable lead trusts make payments to Mayo Clinic:
A charitable lead annuity trust pays a fixed amount each year to Mayo Clinic and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year to Mayo Clinic 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 Mayo Clinic go up as well.
George would like to support Mayo Clinic and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to Mayo Clinic each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $686,160. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,619,706 at the end of the trust term.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From 2 Win-Win Ways to Donate.
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You can make a big difference with just a little effort by including a gift to benefit Mayo Clinic your will or living trust. Learn more in our free kit Transforming Care With a Gift to Mayo Clinic.
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- Contact the Mayo Clinic Office of Gift Planning at 800-297-1185 or email@example.com to talk about supporting Mayo Clinic by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- 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