Charitable Lead
Trusts

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Burton and Joyce had a successful business developing both residential and commercial real estate. Several years ago 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. 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.

Joyce: 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 grew beyond our wildest dreams."

"We were able to provide a wonderful home for our children, but they are off on their own now with their own families. While the company grew, our immediate needs shrank."

A few years ago, Burton and I sat down with our kids and our advisors and talked about what was important to us and what we really wanted. Our kids were all doing fine on their own. We didn't need all the income the company was generating. Our attorney told us about something called a charitable lead trust funded with some of our excess assets."

"It sounded great to us - some tax benefits and our estate remains intact for our grandchildren's educations. Even though Burton is no longer here to see it, we are helping to make a difference in other people's lives and we were able to do it while we were both here and could be part of it. It really feels good to see firsthand how the income from the trust can really make a difference."

Joyce and Burton 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 their heirs. Because the 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.

Please click here to meet Susan and Fred.

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The content in this Planned Giving section has been developed for Eugene Bible College by Future Focus. Please report any problems to webmaster. Revised: December 6, 2002 22:31.