Planned Giving
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 Southern Coos
Health Foundation 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. |
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