Luke and Candice spent many years volunteering with and supporting a charity. They wanted to give to it in a way that would make a significant impact on its mission. At the same time, they were looking for a way to care for their family in the future.
Luke: We heard that with new lower rates, now is the best time in years to set up a charitable lead trust. We could fund the trust with cash or stock, and this trust would pay income to the charity for a number of years, with the rest of the trust value going to our children in the future.
Candice: We liked the fact that our children would be well cared for and that we could see the result of our gifts to the charity we love now.
Luke and Candice were also pleased to learn that taxes on the gift to their children would be significantly reduced by the added benefit of a gift tax charitable deduction. After the income was paid to their charity, the remaining trust value would go to their children with very little tax owed.
Luke: Candice and I found that by using a charitable lead trust, we could accomplish our goals of helping both family and the charity's mission during our lifetimes.
Please note: The story, names and image above represent an example of the benefits of this type of estate-planning tool. They do not represent actual donors to GFA.
GFA's charitable unitrusts are administered by WaterStone and can be funded with cash, securities or real estate with a minimum value of $100,000. Income payments from a charitable unitrust may be received quarterly or annually.