Charitable Lead Trusts
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Do you want to benefit from the tax savings that result from supporting The Adath Foundation, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.
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Discover which type of charitable trust best fits your estate plan by requesting our guide "Trusts: Choose From 2 Win-Win Ways to Donate", using the form at the bottom of the page!
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There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to The Adath Foundation and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to The Adath Foundation go up as well.
A charitable lead annuity trust pays a fixed amount each year to The Adath Foundation and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to The Adath Foundation go up as well.
Check Out This Potential Scenario
George would like to support The Adath Foundation and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7% of the initial fair market value) to The Adath Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Learn How To Fund ItCalculate Your BenefitsSubmit a few details and see how a charitable lead trust can benefit you.
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