Charitable Remainder Annuity Trust
Fixed income with a flexible payout percentage

Annuity trusts provide a fixed dollar amount to the beneficiary(ies). A benefactor irrevocably transfers cash or a readily marketable security to a trustee who invests and reinvests the assets as a separate legal entity. Prior to the trust's implementation the amount of income payment is arrived at by taking a percentage of the market value of the asset(s) transferred and this irrevocable, fixed dollar amount will be agreed upon and stated in the trust agreement. The minimum annual payout rate must be at least 5% of the initial gift amount but may exceed that by agreement between the benefactor and the Foundation. In accordance with the Taxpayer Relief Act of 1997, the present value of the remainder interest must be at least 10% of the FMV of the original gift at the time of the trust's funding. The minimum support level for a Charitable Remainder Annuity Trust is $100,000.

For more information about gifts by will or living trust, or if you have already decided to include Advocate in your estate plans, please call Michael Bell, director of planned giving, at 847.384.3418.

Back to back to make a planned gift