Charitable Lead Trusts

Fred and Susan truly appreciated the quality of the diverse programming of community radio. Their trust gift provides a significant source of income to the station for the next several years. This generous contribution will help ensure quality program offerings for years to come. The funds will be used to accommodate both their wishes.

Fred studied electrical and mechanical engineering at a Midwest university and was successful in the corporate world. He retired as President of a large machine works company.

Fred: "We know how important an independent voice is to a community, and we know how difficult it is for them to develop the funding they need. Facilities, up-to-date equipment, getting staff - it's all literally urgent."

Susan: "We benefited because others before us had given their time and their dollars - now we can give back. And what a joy it is to know that while we currently don't need the income, it is going to someone who does. It's awesome - we are helping to change lives now and yet the assets will be there for our children after we're gone!"

Fred: "That's why Susan and I made the decision. The trust will provide income to the charity and we can see the benefits it provides while we are here. But we have the peace of mind knowing that our estate will be there to help our immediate family after we're gone."

A charitable lead trust is often described as the opposite of a charitable remainder trust. It is a gift plan that enables you to transfer assets to your heir or heirs often at a reduced tax basis or cost and also make a gift to the charity you desire. A charitable lead trust is established by irrevocably transferring assets into the trust.

A trustee (either you or someone you name) invests the assets of the trust and pays annually a fixed percentage of the trust's value to the charity or charities named to benefit by the trust. The income received by the charity (ies) may be used for general purposes or for the purpose designated when you established the trust.

The trust is established for a fixed number of years. After the term of the trust has ended, the assets in the trust are distributed according to your wishes. Any increase in the value of the assets held by the trust would be distributed free of addidtional estate or gift tax to your beneficiaries.

Susan and Fred are content knowing that they didn't break away from the pack; through their generosity they are helping move the pack forward.

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