Charitable
Lead Trusts
Phil
and Alicia had a successful business developing both residential and commercial
real estate. One of their first charitable gifts had been a gift
of appreciated stock. They realized that their assets provided more income
than they need for their current family living expenses but that they wanted to
maintain their assets to be sure their grandchildren would have the resources
for their college educations.
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, our estate remains intact for
our grandkids' education and, not only are we making a difference in other peoples'
lives, we're able to do it while we're here and can be part of it. It really feels
good to see firsthand what the income from trust means in these children's lives!"
Phil and Alicia
wanted to contribute $1 million to support continuing public radio. They placed
a sufficient amount of income producing commercial property to make annual payments
of $100,000 over ten years. This will provide their station with $1 million in
total and after ten years, the assets will pass to the donor's heirs.
The
Charitable Lead Trust (CLT)
is a powerful way to make a future transfer of assets
to your heirs at a significantly reduced gift and
estate tax cost, while also providing KBIA with income.
During a specified number of years, the lives of one
or more individuals, or a combination of the two,
a contribution is paid to KBIA. A lead trust may be
structured to provide a fixed dollar contibution annually
(CLAT) or a fixed percentage contribution (CLUT).
At the end of the trust term, the assets pass to the
beneficiaries the donor's name. The donors choose
the trustee.
As
we said earlier, there are as many ways to support KBIA 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 as many others already have. The following
page has some further thoughts about joining the family of support for KBIA.
Or return to the Planned Giving homepage.