Charitable Lead Trust
How it Works
- You contribute securities or other appreciated assets to a charitable lead trust.
- The trust makes fixed annual payments to William & Mary for a period of time.
- When the trust terminates, the remaining principal is paid to your heirs.
Benefits
- Income payments to William & Mary for a term reduce the ultimate tax cost of transferring an asset to your heirs.
- The amount and term of the payments to William & Mary can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
- All appreciation that takes place in the trust goes tax-free to the individuals named in your trust.
Contact us
If you have any questions about charitable lead trusts, please contact us. We would be happy to assist you and answer any questions you might have and to provide you with an illustration demonstrating your specific tax benefits.