Goal: Pass assets to heirs at potential tax savings
Benefit: Charitable tax deduction, favorable estate tax circumstances
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 the 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
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 grandchildren's educations. 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 ."
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 Saint Joseph's 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.
For more information or a confidential discussion of your charitable options, please email or call the Vice President and Chief Advancement Officer, Joanne Bean, at 207-893-7891.
Please note, individual financial circumstances
will vary. The information on this site does not constitute legal or tax advice, either in whole or in part. 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 Legacy Giving section has been developed
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