Planned Giving

A charitable remainder unitrust can help you maintain or increase your income while making a significant gift to Treasure Coast Hospice Foundation.

If your unitrust grows, your payments will grow too, providing a hedge against inflation. A unitrust provides more flexibility than other life income plans.

A charitable remainder unitrust could be right for you if:

  • You want to provide income for yourself or others.
  • You want the possibility of income growth.
  • You want to save income taxes or capital gains taxes.
  • You want to choose the person who administers your gift and guides its investments.
  • You want to make a generous gift to Treasure Coast Hospice.
  • You are considering a gift amount of $100,000 or more.
 

Learn more about Charitable Flip Unitrust

How Your Gift Helps

Your gifts to Treasure Health help us to partner with patients, families and the community to enable well-being through extraordinary care, specialized services and life-enhancing education. It will provide Treasure Health with the resources to…

be an inspirational community partner that allows people to drive their own destinies for the highest quality of life;
deliver a family of services including palliative care, hospice care, pediatric care and grief support;
uphold our commitment to make every moment count for our community members while providing the highest quality compassionate care.

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Separate trust 
A charitable remainder unitrust is a tax-exempt trust governed by a trust agreement. You choose the trustee who is responsible for administering the unitrust and guiding the investment of its assets.

Irrevocable gift 
A charitable remainder unitrust is an irrevocable arrangement. Once you transfer assets to the trust, you cannot change your mind and get the assets back. This requirement assures that whatever value remains in your unitrust when it ends will go to support Treasure Coast Hospice.

Payments vary with value of unitrust 
Each year, your unitrust will distribute a fixed percentage of its current value, as revalued annually. If your unitrust's value goes up from one year to the next, its payments will increase proportionally. Likewise, if your unitrust's value goes down, its payments will also go down.

Remaining assets to Treasure Coast Hospice Foundation
When your unitrust ends, all of its remaining principal will become available to support Treasure Coast Hospice.

You choose the payment percentage 
You choose the percentage of your unitrust’s value that it must pay each year to its income beneficiaries. The payment percentage must be at least 5%. It may be to your advantage to choose a relatively low payment percentage so that your unitrust’s assets have the best chance to grow. If the value of your unitrust grows, so will its payments. A payment rate of 5% to 6% is typical. Payments are usually made in annual, semiannual, or quarterly installments. 

Payment flexibility 
You can include special payment provisions in your unitrust that make it a good way to give debt-free real estate or other illiquid assets that may take time to sell. In this situation, you can limit your unitrust's payments to its net income or its unitrust percentage, whichever is less. This way, your trustee can take the time necessary to sell your assets at a fair price. If your unitrust's net income is less than its unitrust percentage during this time, then it will distribute its net income only. This "net income" limitation can last for the entire term of your unitrust or just until a specific event occurs, such as the sale of your gift asset.

Who can receive payments? 
You decide who will get the payments from your unitrust. Usually, this will be you, or you and your spouse. You can, however, select other people to receive the payments. For example, you may wish to provide income for parents, a sibling, or children.

How long do payments last?
While most unitrusts last for one or two lives, other terms are possible. A unitrust can last for more than two lives, for a specific length of time of up to 20 years, or for a combination of lives and years.

Tax benefits 

  • Earn an immediate income tax charitable deduction.
  • Avoid capital gains tax.
  • May reduce estate taxes and probate costs.

You will receive an income tax charitable deduction in the year of your gift. If you cannot use the entire deduction in the year of the gift, you may carry forward your unused deduction for up to five additional years. If you give appreciated securities to fund your unitrust, you will not pay any capital gains tax when you make your gift.

In addition, because a unitrust is a tax-exempt trust, it will not pay any capital gains tax when it sells these assets. This means that your trustee will be able to reinvest the full value of the assets you donate. By removing the gift assets from your estate, you may also reduce estate taxes if your estate exceeds the then applicable estate tax credit. You may also reduce probate costs when your estate is settled. The amount of these savings will depend on the size of your estate and on estate tax law in force at the time your estate is settled.

Taxation of payments 
The taxation of unitrust payments depends on the trust’s past distributions and investment performance. Payments from a unitrust are typically taxed as ordinary income. If the trust is funded with appreciated assets, a portion of the payments could be taxed at lower capital gains tax rates in some years. It is even possible for a portion of the payments to be tax-free in years when there is not enough ordinary income and capital gain income to make the payments.

Add funds anytime
You can make additional gifts to your unitrust anytime. Additions earn an additional income tax charitable deduction that may save you income taxes if you itemize your deductions. You will also increase future payments without the effort and expense of creating a new unitrust.

Assets to consider giving
The following assets make excellent sources for funding your charitable remainder unitrust:

  • Cash that you currently have in a savings account, bank CD, money-market fund, or other safe but low-yielding investment.
  • Securities, especially highly-appreciated securities.

It is also possible to create a unitrust using real estate that is debt-free or other illiquid assets that may take time to sell.

Example

Dahlia Holloway is 76 years old and her husband John is 75. Many of the stocks in their portfolio have appreciated substantially in value over the many years the Holloways have owned them. They are enthusiastic about making a major gift to support Treasure Coast Hospice Foundation, but they also would welcome a way to receive greater income from their investments without paying a big capital gains tax.

After consulting with their advisor, the Holloways find that a 5% charitable remainder unitrust funded with $500,000 in assets will meet their needs perfectly. They fund their unitrust with $400,000 in stocks plus $100,000 from a money market fund. They paid a total of $75,000 for the stocks, which currently produce about 2% in dividends each year. Their money market fund has been earning about 2% interest annually.

Benefits

  • The Holloways will receive $25,000 in payments in the first year of their unitrust, significantly increasing the income they had been receiving from these assets. If the income and appreciation of the trust's investments, net of costs and fees, total 7% annually, their payments will grow to over $33,647/year* in 16 years.
  • The Holloways will receive an immediate income tax charitable deduction of about $250,155**.
  • The Holloways' trustee will be able to sell their stock immediately in order to diversify their unitrust's investments without paying any capital gains tax.
  • Assuming its investments earn a 7% net annual return on the unitrust's investments, over $686,393* will be left in the Holloways' unitrust to support Treasure Coast Hospice Foundation when their unitrust terminates.

*The future payment amounts and principal amount remaining for Treasure Coast Hospice Foundation will be lower if the Holloways' unitrust earns less than 7% annually.
**The Holloways' income tax charitable deduction will vary slightly depending on the timing of their gift.

 

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A Message from Our CEO

Susan de Cuba

President and Chief Executive Officer

Few creatures inspire as much wonder as the hummingbird. Tiny, yet strong enough to migrate 500 miles across the Gulf of Mexico, this brilliant bird is the ultimate symbol of resilience. So it’s only fitting that we have incorporated a hummingbird into our new look and logo to symbolize our organization’s life-affirming mission.

Under the Treasure Coast Hospice name, we have grown our services beyond our cornerstone hospice program to include palliative care, grief support counseling and specialized pediatric care. To better reflect our expanded scope of community services, we have changed the name of our parent organization to Treasure Health, while our flagship hospice program will continue to be called Treasure Coast Hospice.

Hospice will always be the heart of our mission. The same outstanding care the community has known since 1982 will continue. The experience we’ve gained during the past 35 years translates well to other services that improve quality of life. Our full spectrum of support includes Treasure Coast Hospice, Treasure Health Palliative Care, Treasure Health Pediatric Care and Treasure Health Grief Support.

With all of our services, our goal is to empower patients and families with the knowledge and support they need to make every moment count.  Guiding our efforts is a caring community of health professionals, volunteers and donors. Like me, they believe that in all stages of illness, everyone deserves to experience the best possible quality of life.

With our comprehensive, compassionate approach to palliative care, hospice services and grief support, we are building communities that allow people to drive their own destinies for the highest quality of life in every health circumstance.

We are excited to embrace a fresh brand that helps us promote our life-affirming philosophy and look forward to having you join us as a trusted partner in supporting our community’s healthcare journey.

For more, see our spring newsletter
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Five Wishes ®

“Five Wishes ®” is an easy-to-use legal document written in everyday language to help you plan how you want to be cared for in case you become seriously ill. It is America’s most popular living will.

You decide: With more than 18 million copies in circulation, “Five Wishes ®” helps you express what you want in the areas that matter the most to you: personal, spiritual, medical and legal. It helps you describe what good care means to you, whether you are seriously ill or not, so your caregiver knows exactly what you want.

Gift to your family: “Five Wishes ®” can help start and guide family conversations in advance of serious illness, so completing it is a gift to your family, friends and also your doctor. It keeps them out of the difficult position of having to guess what kinds of treatment you want or don’t want.

Meets Florida law: “Five Wishes ®” meets the legal requirements for an advance directive in Florida and 41 other states. All you need to do is check a box, circle a direction, or write a few sentences. Once it is signed and witnessed, your “Five Wishes ®” becomes a legal document.

To learn more about “Five Wishes ®”or to schedule a presentation for your group or community, please email Craig Perry  in Martin County or Tracey Kinsley in St. Lucie County.