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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 Boston 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.
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