A Charitable Remainder Trust (CRT) offers a way to arrange a gift to the Foundation, while providing income for yourself or your loved ones. To create a CRT, the donor would transfer cash or other assets to a trust. The trustee would then manage the assets and each year income from the trust would be paid to the beneficiaries. When establishing the trust, the donor must elect regular payments to the Foundation be made in either a fixed dollar amount, or a fixed percentage of the principal balance of the trust.

Cash or property may be used to fund a Charitable Remainder Trust. Provided the trust meets all the necessary requirements, the donor would be allowed a charitable income tax deduction for a portion of the assets contributed to the trust in the year of the transfer. Like the gift annuity, a charitable trust offers the opportunity to avoid or reduce capital gains when you contribute appreciated property. The unique advantage of a trust is that the payments can be either variable or fixed, depending on your personal financial situation. In addition, you would have the option to continue the income to provide for additional beneficiaries. The amount of the deduction, and the portion of income that is taxable would depend on the specific terms of the trust. Although trusts offer tremendous flexibility, they can be expensive to maintain. Therefore, it is generally not worthwhile to create a trust in amounts below $250,000 to $300,000.

Due to the complexity of CRTs and because your personal financial situation is unique, you should consult your financial advisor before making this or any other planned or deferred gift.

Watson Clinic Foundation Inc. qualifies under 501(c)(3) of the IRS code. Our Federal Tax ID number is 59-1100876.

A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE (800-435-7352) WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.