Planned Giving Program – Charitable Lead Trusts

Summary:
A charitable lead trust permits the donor to pass income-producing assets to the next generation, realizing both income and wealth-transfer and at the same time providing annual support to the Society.

How It Works:

  • The donor transfers assets to a trust, and the trust makes fixed annual payments to the Society for a specific term.
  • At the end of the term, the trust terminates and the assets pass to the beneficiaries.

Benefits:

  • Wealth is transferred at reduced gift tax rates.
  • The gift to beneficiaries is the actuarial value of their right to the trust assets when the trust ends.
  • The larger the trust payments to the Society and the longer the term, the smaller the gift or estate tax exposure.
  • No estate tax is paid on the appreciation of assets placed in the trust.
  • The donor is able to support the Society during his or her lifetime.

Customization:

  • There are various provisions which can make up a charitable lead trust.
  • Contact Society Treasurer Paul R. Judy directly or through counsel to establish a trust agreement meeting the objectives and needs of the donor and benefiting the Society.

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Banner photo by Elliot Mandel