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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 ride. 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. While we are helping to
make a difference in other people's lives, 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 ."
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 California
Symphony 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. Donor stories and photographs
are for purposes of illustration only. 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 California Symphony by Future
Focus. Please report any problems to webmaster.
Revised: March 20, 2007 21:39.
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