CHARITABLE LEAD TRUSTS

In a charitable lead trust, the donor places assets, cash, property or securities, into a trust.  The assets are invested, and then generate annual income for the school for a specified number of years.  At the end of that time, the assets are returned to the donor or the donor's heirs.

The donor may set up this trust to make payments during his or her lifetime, or may leave this as a provision in his or her Will.

Benefits of a Charitable Lead Trust

• Leaves a legacy for the school, providing it with substantial income to aid it in continuing its mission.
• Provides the donor with an immediate tax deduction.
• Assets are still passed down to heirs.
• May provide estate tax savings. *

* According to recent tax laws, the estate tax will be phased out gradually until 2009, be totally eliminated in 2010, and then return its 2001 levels in 2011, under a "sunset provision."  Thus, currently the estate of a Will executed after 2010 might be subject to taxes, which could be reduced by charitable remainder trusts.

For more information on planned gifts, please click this link and submit form. 

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