Establishing a Charitable Lead Trust
Benefits:
- You can make a significant series of gifts over a period of years to Canterbury for whatever purpose you wish.
- You are assured that at the end of the trust term (whatever number of years you agree to), the asset in the trust will go to your heirs with little or no transfer tax, no matter how much it has appreciated in value while the trust was in effect.
- You can pass on to your heirs assets you want to retain in the family (like private business or partnership interests, or investment real estate) without worrying about large gift or estate tax bills in the future that might jeopardize your ability to hold on to these assets.
How to establish a charitable lead trust:
- You identify a valuable and appreciating asset (a special stock or piece of real estate, for example) that produces an income but which you would like to retain and pass to your heirs at minimal or no tax.
- You consult with your attorney to draft a lead trust document.
- After all parties to the trust are satisfied with the terms, you transfer the asset into the trust, usually with a third party (like a fiduciary institution) as the trustee.
- For the term of the trust (usually a fixed number of years) the trustee will distribute a specifically defined payout to Canterbury School.
- At the end of the trust erm, hte asset in the trust will pass to your heirs with NO additional transfer tax, no matter how much it has appreciated.
- In this way, you can make a generous gift to Canterbury School over a number of years and preserve your inheritance without worrying about the sizable gift or estate tax that might otherwise be imposed.
If you would like to learn more about these kinds of gifts of if you would like to see a confidential example designed specifically for you, please end an email to mhawkins@canterburyschool.org.