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Planned
Giving
Charitable
Lead Trusts
A Charitable Lead Trust is considered the opposite of a
Charitable Remainder Trust in that the assets that remain
at the end of the trust life return to the donor or to the
donor's beneficiaries. Charitable Lead trusts can be a little
confusing - to help illustrate this gift option, we've created
an example.
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 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 ."
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 Sisters
of Notre Dame de Namur 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.
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 Sisters of Notre Dame de Namur, Ohio
Province by Future
Focus. Please report any problems to section
webmaster. Revised: February 7, 2007 9:33.
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Sisters of Notre Dame de Namur, Ohio Province 701 East Columbia
Avenue, Cincinnati, OH 45215-3999 513-761-7636 | 513-761-6159
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Weaver. This page was updated: February 7, 2007 9:33
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