Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Cedar Community without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to the Foundation:
A charitable lead annuity trust pays a fixed amount each year to the 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 Foundation go up as well.
An Example of How It Works
George would like to support the 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 percent of the initial fair market value) to the 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 $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Not Sure How to Begin Planning?Download My FREE Personal Estate Planning Kit
- Contact Amy Johnson at 262-338-2819 or firstname.lastname@example.org to talk about supporting the Foundation by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Cedar Community Foundation, Inc.
Address: 113 Cedar Ridge Dr., West Bend, WI 53095
Federal Tax ID Number: 39-1249432
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide