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Charitable Remainder Trusts

Charitable Remainder Trusts allow you (or someone you designate) to receive a steady income stream while also supporting the community and the excellent care provided by Palomar Health. This type of donation permanently transfers your assets into a trust managed by you or a designated financial firm.

There are two different ways to structure Charitable Remainder Trusts. A Charitable Remainder Unitrust pays a fixed percentage of the trust’s value annually to one or more beneficiaries. This means the amount of the yearly payout will continually change. A Charitable Remainder Annuity Trust pays a pre-determined fixed amount annually. If the income falls short of the designated fixed amount, the difference is made up by deducting it from the trust’s principal.

In either case, when the trust’s term ends, the remaining amount goes to the Palomar Health Foundation and you determine how it is to be used.

Both types of Charitable Remainder Trusts offer specific advantages, including appealing tax deductions and avoidance of capital gains tax (if the trust is funded with appreciated securities.) Your tax accountant can provide the detailed benefits of each.