Arranging a secure retirement that reflects your values and needs in today’s uncertain economic environment can be daunting. The Sequoia Hospital Foundation offers several innovative ways to make a gift to the hospital and receive an income for life.
Benefits of Life Income Gifts
- It pays you, your beneficiary, or both an income for life or for a specific period of years—in many cases providing a larger income than the gift property is currently earning for you.
- It can offer significant tax advantages in the form of an immediate charitable deduction, avoidance of capital gains tax upon sale of any appreciated assets, and an eventual estate tax savings.
- It relieves you of the burdens of asset management and enables you to support, in a significant way, a Sequoia Hospital program in which you are especially interested.
Charitable Gift Annuity
This provides annual payments for life for you or a loved one, and can provide tax advantages including an immediate charitable deduction, potential capital gain and estate tax savings. A Sequoia Hospital Foundation charitable gift annuity may be funded through a gift of cash or securities of $10,000 or more. The annuity payment amount will depend upon the beneficiary’s age at the time of the gift and the value of the property donated. In some states, regulations may prevent our Foundation from offering gift annuities to residents of those states.
Charitable Remainder Trusts
This is another life income gift that allows the donor to receive income from the Sequoia Hospital Foundation and benefit the program they care about at the end of the trust. An individual transfers an asset, usually appreciated stock or real property, to a trustee (which is usually our trust partner, Wells Fargo). If the assets contributed are other than cash, the trustee usually sells the assets and reinvests the proceeds.
The annual income paid to the beneficiary is not a fixed dollar amount but instead is a percentage of the asset value, usually between 5 and 7 percent. Since the value of the assets will fluctuate from year to year, the trust amount that is paid to the individual will also fluctuate year to year.
