Charitable Lead Trust

Protect Your Assets

You can benefit from the tax savings that result from supporting Memorial Medical Center Foundation 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 our hospitals or foundation:

A charitable lead annuity trust pays a fixed amount each year to our hospitals or foundation 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 our hospitals or foundation go up as well.

An Example of How It Works

Father smiling with children George would like to support our hospitals or foundation 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 our hospitals or foundation 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.

Next Steps

  1. Contact Sharon B. Thornton, JD, LL.M at 562.933.4483 or sthornton@memorialcare.org to talk about supporting our hospitals or foundation by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include our hospitals or foundation in your plans, please use our legal name and federal tax ID.

Legal Name: Memorial Medical Center Foundation
Address: 2801 Atlantic Ave., Long Beach, CA 90806
Federal Tax ID Number: #95-6105984