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 Self Regional Healthcare 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 Self Regional
Healthcare by Future Focus.
Please report any problems to webmaster.
Revised:
July 10, 2008 15:54
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