At the end of the trust term, the remaining assets pass to your heirs free of any further transfer taxes.
Example: Bonnie has admired Lund’s work ever since she volunteered as a young nursing student many years ago. She would like to ensure that Lund’s work can continue into the future. She sets up a Charitable Lead Trust with a contribution of $1,000,000. The trust is established for 15 years and pays 5% (or $50,000) annually to Lund. With an AFR Rate of 2%, and assuming 7% growth of the assets, Lund would receive $750,000 ($50,000 per year for 15 years) and when the trust expires, the amount passed back to family members (or a trust for their benefit) is $1,502,580.
To learn more about establishing a Charitable Lead Trust with the Vermont Community Foundation please click here
If you are interested in setting up a Charitable Lead Trust or if you have any questions, please contact Sharon Lifschutz, Director of Development at (802) 861-2580 or sharonl@lundvt.org
The purpose of this page is to provide general gift, estate, and financial planning information. It is not intended as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other document.
