Sallie Tod Dutton has seen Akron Children’s keep its promise to care for every child as they would their own. The great regard she has for that care is as important as the lessons in charitable giving that she learned from her parents, Fred and Nancy Tod. For more than a century, the Tod family has actively supported healthcare efforts in its community. Fred and Nancy continued this legacy by establishing a charitable remainder trust. Working with their legal and financial advisors, they provided a lifetime of income for their children, saved taxes and supported their favorite charities.
“My parents used it as a teaching moment in philanthropy,” said Sallie. Sallie and her husband, Paul Dutton, appreciate Fred and Nancy’s thoughtfulness. Paul notes that while the charitable remainder trust gives Sallie and her siblings a steady stream of annual income, it also gives them an opportunity to make their own decisions on supporting specific charities like Akron Children’s.
“I believe Akron Children’s is a worthy successor to the Tod family legacy.” – Sallie Dutton
“Fred and Nancy transferred appreciated assets into a binding trust,” explained Paul, an attorney with Harrington, Hoppe & Mitchell, Ltd. “This removed the assets from their estate and gave them an immediate charitable tax deduction. They set up the trust to provide income for their children during their lifetimes, with the ‘remainder’ to be distributed to charity.”
“As a trustee, you can adjust the gift designations to changing circumstances,” added Sallie. That’s exactly what happened when Tod Children’s Hospital – a beneficiary of her parents’ charitable remainder trust – closed in 2007. Sallie met with Akron Children’s president and CEO Bill Considine and discovered that the very first planned gift ever made to Akron Children’s came from her ancestor, Colonel George Tod Perkins. Sallie was convinced her family legacy should live on by supporting Akron Children’s in the Mahoning Valley. She made the necessary beneficiary changes in the charitable remainder trust her parents had established.
“I believe Akron Children’s is a worthy successor to the Tod family legacy,” said Sallie. Paul echoed the sentiment. “Akron Children’s doctors, nurses, volunteers and other team members really make a positive impact for kids and their families.”
Charitable remainder trust
A gift plan featuring income for life and charitable support
- by Steve Cox
A charitable remainder trust (CRT) is an excellent gifting vehicle. But how do you know if it’s the right fit for you? Attorney Steve Cox, a partner in the Roetzel & Andress law firm and one of the Best Lawyers in America® for Trusts and Estates, weighs in on the question.
“With a CRT, you transfer assets to a trust and receive payments in return,” said Cox. “The payments continue for the lifetimes of your beneficiaries, for a fixed term up to 20 years, or both. Once your last beneficiary has passed or the term of years ends, the assets go to Akron Children’s.”
Cox notes that CRTs offer 4 additional benefits to donors:
- An immediate income tax deduction.
- A way to turn appreciated property into cash without paying capital gains tax.
- A potential reduction of probate costs and estate taxes.
- A legacy of giving.
“Always work with a professional advisor to establish a CRT plan,” said Cox. “Once a CRT is up-and running, you can’t change your mind and reclaim the trust property.” If you would like to start a conversation about supporting Akron Children’s with a CRT, please contact Maureen Katanic, senior director of development, at 330-543-8343 or mkatanic@akronchildrens.org.
