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Charitable Lead Trust |
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How It Works
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You contribute cash, securities or other property to a trust. |
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The trust makes fixed annual payments to Stuart for a specified term of years. |
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When the trust ends, the remaining principal goes to your heirs. |
Benefits
- You can design the trust to qualify for an income and gift tax deduction for the present value of the annuity payments to Stuart .
- You can adjust the annuity payments and the term of the trust 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 gift tax exemption equivalent to further reduce taxes on transfers to your heirs.
- If you create this trust in your will, upon your death, you can use your available estate tax exemption equivalent ($1.5 million per person in 2004; $2.0 million per person beginning in 2006).
- You can have the satisfaction of making a significant gift to Stuart , while passing remaining trust property to your beneficiaries at a discount. Therefore, you can make a substantial future gift to family for less than the fair market value of the property placed in trust.
To learn more about Charitable Lead Trusts, Email us, complete the Information Request form, or call us at (609) 921-2330 ext. 279 so that we can assist you.