A charitable lead trust holds your donated appreciating assets for a term of years (or your lifetime) and gives to the College quarterly or annual income payments. When the charitable lead trust ends, its property goes back to the donor or to someone the donor designated. A lead trust can be structured to provide substantial savings or elimination of estate and gift taxes for the assets passing to heirs upon termination of the 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 Hampshire College of $6,000 per year for 20 years. Thus, the total gift is $120,000. After 20 years, the trust terminates and its assets 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 Harold Johnson Society.
For more information, please contact us.
- 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 College now and for years to come and then for your beneficiaries.