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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 experience.
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. Through this trust, we are helping to make
a difference in other people's lives and 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."
"I
can't describe the feelings we share when we see what
a difference we are helping to make in people's lives
- it is simply so worthwhile."
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
the United Methodist 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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