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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 Marshall University Foundation 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 the MU Foundation.
  • 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 the MU Foundation now that reduces the taxes due on transfers to your heirs later.