Joe and Kathy worked for many years building up their nest egg for retirement. Throughout those years, they have been committed donors to OSF and were especially dedicated to Children's Hospital of Illinois. While they felt their savings and investments would cover their own needs, they wanted to make sure their three children were provided for in the future. One afternoon, a gift planner from the OSF Healthcare Foundation met with them to thank them for their faithful gifts each year. The conversation turned to the couple's long-term planning goals.
Kathy: We wanted to continue making annual gifts to OSF. Yet at the same time, I was concerned about sacrificing our children's inheritance.
Joe: Our stock portfolio had appreciated significantly over the years. I wanted to pass these gains on to my family without paying a lot in gift or estate tax.
The gift planner told them about a way in which they could achieve their personal and charitable goals through a charitable lead trust. The trust would pay income to OSF for a number of years to support Children's Hospital of Illinois. Then the full trust value, plus any growth, would go to their children. The plan would allow them to pass on substantial wealth to their family at little or no gift tax at all. It would also reduce the size of their estate in addition to helping OSF further its work in caring for its smallest patients.
Kathy: I could see how this plan would be very helpful if the trust was funded with our stock. Each of our children would receive one-third of the trust assets in the future. At the same time, we would continue to make gifts to OSF each year.
Joe: I also thought the plan was a good one. It would give our children time to learn how to save and invest their future inheritance. We gladly moved forward and set-up a charitable lead trust plan that would begin providing income to OSF to support Children's Hospital of Illinois each year. The prospect of helping our children succeed in the future while helping the children and families cared for at Children's Hospital of Illinois now, made us realize this was the right choice.
*Please note: The story above is inspired by our wonderful donors and is for illustration purposes only to help you understand the benefits of planned giving. For more information on the benefits of a charitable lead trust, please click here to download a free brochure, or call our office at (309) 566-5653.