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Charitable Lead Trust

A charitable lead trust holds your donated appreciating assets for a term of years (or your lifetime) and gives to the university quarterly or annual income payments.

When the charitable lead trust ends, the trust property is returned to the donor or his/her designee. A lead trust is frequently used to ZERO OUT estate and gift tax costs and assist in the creation of multi-generational wealth preservation trusts.

The most daring of financial planning charitable donors can also create substantial lifetime income tax savings by establishing a Charitable Lead Trust.

You may establish a charitable lead trust either during your lifetime or in your will. A charitable lead trust can substantially reduce the estate taxes payable at the time of death. The value of the charitable interest depends on the length of the trust and the amount to be paid out each year. The saving in estate taxes may mean that your family members will receive substantially more than if the property was left directly to them.

Example: Let's say a donor contributes $100,000 to a 6% charitable lead annuity trust that provides for the payment to Fitchburg State University of $6,000 per year for 20 years. Thus, the total gift is $120,000. During that 20 years the trust earns on average 10% per year. After 20 years, the trust terminates and its assets totaling are distributed to the donor's children free of estate or gift tax.

Once your charitable lead trust is established, you will enjoy the benefits of membership in the Saxifrage Society.

For more information, please do not hesitate to contact us.

Benefits

 
  • Substantial savings (even elimination) of gift and estate taxes, and assets ultimately go to your heirs
  • Appreciation tax-free for those named in trust after it runs its course
  • Support for the University now and for years to come and then for your beneficiaries