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Charitable
Lead Trusts
Phil and Alicia
had a successful business developing both residential and
commercial real estate. They realized that their assets
provided more income than they need for their family's current
living expenses; however they wanted to maintain their assets
to ensure their grandchildren would have resources for college
educations. One of their first charitable gifts had been
a gift of appreciated stock.
 They
discussed their circumstances with their financial advisor
who showed them how they could make a charitable gift now
and be able to enjoy seeing the results while they were
still here.
Phil: "It
really has been a wonderful experience. When we first started
developing residential housing, we had no idea where it
would all lead. We were fortunate to make some choices that
really set up the company for success. It's grown beyond
our wildest dreams."
Alicia:
"We have been able to provide a wonderful home for our children,
but they are off on their own now with their own families.
While the company has grown, our immediate needs have shrunk."
Phil:
"Not too long ago, we sat down with our kids and our advisors
and talked about what was important to us and what we really
wanted. Our kids are all doing fine on their own. We certainly
don't need more. Our attorney told us about something called
a charitable lead trust funded with some of our excess assets."
Alicia:
"It sounded great to us - some tax benefits and our estate
remains intact for our grandchildrens' education. Through
this trust, we are helping to make a difference in other
people's lives and we're able to do it while we're here
and can be part of it. It really feels good to see firsthand
how the income from the trust can really make a difference."
"I can't
describe the feelings we share when we see what a difference
we are helping to make in people's lives - it is simply
so worthwhile."
 Phil
and Alicia wanted to contribute $250,000. They placed a
sufficient amount of income producing commercial property
into a Charitable Lead Trust (CLT)
that would make annual payments of $25,000 over ten years.
This will provide the charity with $250,000 in total and
after ten years, the assets will pass to the donor's heirs.
Because the gift tax deduction and the amount subject to
gift tax is determined at the time the assets are contributed
to the CLT, any appreciation of the assets that takes place
during the term of the trust is not subject to additional
gift or estate tax.
As we said
earlier, there are as many ways to support the Bay Area
Rescue Mission as there are needs for your support. Please
contact us should you have
questions or if you would like to discuss your personal
circumstances to see how you can enrich your heart and the
lives of others as many others already have. The next
page has some final thoughts.
Please
note, individual financial circumstances will vary. The
information on this site does not constitute legal or tax
advice. As with all tax and estate planning, please consult
your attorney or estate specialist. All material is copyrighted
and is for viewing purposes only. Use of this site signifies
your agreement with the terms of use.The
content in this Planned Giving section has been developed
for Bay Area Rescue Mission by Future
Focus.
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Revised: March 5, 2006 18:14.
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