Protect Your Assets

Charitable Lead Trusts Offer You Options

You can benefit from the tax savings that result from supporting National Jewish Health 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 National Jewish Health:

A charitable lead annuity trust pays a fixed amount each year to National Jewish Health 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 National Jewish Health go up as well.

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See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.

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An Example of How It Works

Man smiling with childrenGeorge would like to support National Jewish Health and provide for his children. Following his advisor's recommendation, George funds a charitable lead annuity trust with assets valued at $2,500,000.

George's trust pays $175,000 (7 percent of the initial fair market value) to National Jewish Health each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.

His gift tax deduction is $2,317,400* against the $2,500,000 of assets. Therefore, only the difference ($182,600) is subject to gift tax, which is offset against his lifetime gift tax exclusion. After that, the remaining trust assets and all of their growth will pass to his family at zero additional cost in gift and estate taxes. Had George given the $2,500,000 outright to his children, it would have been a taxable gift.

*Assuming annual payments and a 1.6 percent charitable midterm federal rate.

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Next Steps

  1. Contact Gordon Smith, MBA, CFRE at 1.800.423.8891, Ext. 6549 or giftplanning@njhealth.org to talk about supporting National Jewish Health by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include National Jewish Health in your plans, please use our legal name and federal tax ID.

Legal Name: National Jewish Health
Address: Denver, CO
Federal Tax ID Number: 74-2044647