Charitable Lead Trust (A Charitable Way to Pass Assets to Heirs)
How it works
You contribute cash, securities or other property to a trust.
The trust makes fixed annual payments to the Taft School for a specified term of years.
When the trust ends, the remaining principal goes to your heirs.
Benefits
You qualify for a gift tax deduction for the present value of the annuity payments to Taft.
The annuity payments and the term of the trust can be specified in such a way so as to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
All appreciation that takes place in the trust goes tax-free to your heirs.
You can use your available estate tax credit ($1.5 million per person in 2004; $2.0 million per person beginning in 2006) to further reduce taxes on transfers to your heirs.
You can have the satisfaction of making a significant gift to Taft now that reduces the taxes due on transfers to your heirs later.
For more information
Email us, complete the personal illustration form, or call us at (860) 945-5923 so that we can assist you through every step of the process.
