Charitable Lead Trusts
© Harold E. Malde
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A charitable lead trust is an excellent way to give an immediate gift to The
Retirement Resource Organization while ultimately transferring assets to your loved ones – often with significantly reduced gift and estate taxes.
You establish a charitable lead trust by transferring cash or appreciated assets such as securities or real estate to the trust. The trustee may be a financial institution or an individual of your choice. Your trust will provide annual income (a fixed amount or a percentage of the trust principal as revalued annually) to the
Organization for a period of years. After this term ends, the principal transfers to your beneficiaries, enabling you to pass significant assets to family members with little or no gift or estate tax.
You may also establish a charitable lead trust under the terms of your will. This is an effective way to make a sizable gift to charity while reducing your estate taxes. We can work with you and your advisor to help determine if a charitable lead trust will meet your financial and philanthropic goals.
Benefits
- A Significant Contribution - Make an immediate, significant contribution towards
assisting other retirees and caregivers.
- Substantial Tax Savings - Receive potentially significant tax savings.
- Transfer Your Assets - Have the ability to transfer assets on to other generations.
How It Works (example)
Nathan wants to make a significant gift to save
retirees from serious problems, but he also wants to pass most of his assets onto his son, Mark. He contributes $2,000,000 in appreciated stock to a 10-year charitable lead annuity trust to benefit the
Organization. The trust stipulates that the Organization receive five percent of the initial value of the trust annually. We will use the $100,000 annual payment to fund
senior transportation acquisitions and funding, and medical preventive screening
testing programs – an area of special interest to Nathan’s family. At the end of the 10-year term, Mark receives the trust principal.
Nathan will realize important philanthropic goals while reducing estate and gift taxes and preserving family wealth.
Contact Us
Would you like more information on charitable lead trusts or other planned gifts? Please contact us, e-mail
legacy@retirement-resource.org
or call us at (877) 855-3718.
Gift Planning Home | Charitable Lead Trust Home | Comparison of Giving Options | Contact Us
Information provided on our Internet site is not intended to be tax or legal advice.
Rates used in the example are for illustrative purposes only. Please consult a qualified financial advisor before making a gift.
| The Retirement Resource Organization, Inc. is a tax-exempt charitable organization under Section 501(c)(3) of the Internal Revenue Code.
Donations are tax-deductible. | |
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