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. 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.
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, 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!"
Phil and Alicia 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 WUMB with income. During a specified number of years, the lives of one or more individuals, or a combination of the two, a contribution is paid to WUMB. A lead trust may be structured to provide a fixed dollar contibution annually (CLAT) or a fixed percentage contribution (CLUT). At the end of the trust term, the assets pass to the beneficiaries the donor's name. The donors choose the trustee.
As we said earlier, there are as many ways to support WUMB 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 as many others already have. The following page has some further thoughts about joining the family of support for WUMB Radio.