A charitable lead trust is the reverse of a charitable remainder trust. Income earned from the trust is gifted to Carroll College for a specific number of years, after which the trust assets revert to the donor or is passed on to a non-charitable beneficiary designated by the donor. The income interest for the college may take the form of a fixed annuity or a fixed percentage of the value of the trust assets valued annually.
A charitable lead trust is an attractive gift option for a donor whose income exceeds his/her current needs. It also allows property to be transferred to eventual family beneficiaries at a low transfer cost, particularly when the property has a high appreciation potential.
The tax consequences of "grantor" and "non-grantor" charitable lead trusts are significantly different, and should be discussed carefully with a tax and/or legal advisor. Trust assets transferred to a donor's grandchildren, for example, may be subject to the federal "generation-skipping tax."
Charitable Lead Unitrust example
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Features and Benefits
- Opportunity to make a sizable current gift to Carroll College while retaining the assets
- Reduces current income while retaining assets
- Can be a low-cost means of transferring property to heirs
- Potential estate, inheritance and gift tax savings
- Membership in the John Adams Savage Society
Charitable Lead Annuity Trust - For more information please contact the office of gift planning and estate services.
Contact Marc R. Barbeau, senior advancement officer for gift planning and estate services, Carroll College, 100 N. East Ave., Waukesha, WI 53186, (262) 524-7241 or mbarbeau@cc.edu.
The information on this web site is not intended as legal advice. For advice and assistance in specific situations, the services of a professional advisor should be obtained.
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