Keith and Tina spent many years volunteering and supporting their favorite charity. They wanted to give back in a way that would help fulfill its mission.
Keith: We heard that now is the best time in years to set up a charitable lead trust. We could fund the trust with cash or stock and the trust would pay income to the charity for a number of years, with the rest of the trust value going to our children in the future.
Tina: We liked the fact that our children would be well cared for and that we could see the result now of our gifts to our favorite charity.
Keith and Tina were also pleased to learn that taxes on the gift to their children would be significantly reduced by the added benefit of a gift tax charitable deduction. After the income was paid to our organization, the remaining trust value would go to their family with very little tax owed.
Keith: By using a charitable lead trust, we could accomplish our goals of helping both family and our favorite charity during our lifetimes.
Is a charitable lead trust right for you?
A charitable lead trust can be an excellent tax-planning strategy. If you have questions about lead trusts, please contact us