Charitable Lead Trust

Joyce and Burton had a successful business developing both residential and commercial real estate. One of their first charitable gifts had been a gift of appreciated stock. They realized that their assets provided more income than they need for their current family living expenses but that they wanted to maintain their assets to be sure their grandchildren would have the resources for their college educations.

Burton: "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."

Joyce: "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."

Burton: "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."

Joyce: "It sounded great to us - some tax benefits, our estate remains intact for our grandkids education and, not only are we making a difference in other peoples' lives, we're able to do it while we're here and can be part of it. It really feels good to see firsthand what the income from trust means in these children's lives!"

Burton and Joyce wanted to desired to contribute $1 million to support continuing public radio broadcasting. They placed a sufficient amount of income producing commercial property to make annual payments of $100,000 over ten years. This will provide their station with $1 million in total and after ten years, the assets will pass to the donor's heirs.

The Charitable Lead Trust (CLT) is a powerful way to make a future transfer of assets to your heirs at a significantly reduced gift and estate tax cost, while also supporting WFAE with income. During a specified number of years, the lives of one or more individuals, or a combination of the two, an annuity or a fixed percentage of the trust assets is paid to WFAE. At the end of the trust term, the assets pass to the beneficiaries named by the donors . The donors also choose the trustee.

Now click here to meet Susan and Fred

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. 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. This Planned Giving section has been developed for WFAE 90.7fm by Future Focus. Please report any problems to webmaster. Revised: September 18, 2008 12:40 .

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