Charitable lead trusts can be used to transfer assets to children or other loves ones loved ones at a significantly reduced tax liability. The trust makes a fixed payment to Duke for a specified term, measured by someone’s life or a number of years. After the trust term ends, the remaining assets are passed on to loved ones. Applicable estate or gift taxes on the value of that transfer are reduced or eliminated. The tax savings from a charitable lead trust may allow you to provide significant support for Duke at little or no cost to heirs in terms of ultimate inheritance.
A charitable lead trust can be a powerful way to plan for your future, but the technical complexities require careful consideration. Duke’s Office of Gift Planning is glad to work with you and your financial advisors to see if a charitable lead trust is the right plan for you.
Benefits of a charitable lead trust:
- Reduce or eliminate estate and gift tax liability on transfers to heirs.
- Provide a reliable source of income to Duke.
- Support the area of Duke most meaningful to you.
Charitable Term Trusts
Alternatively, a different type of trust, known as a Charitable Term Trust, can be set up to accelerate income for the donor. All contributed assets are invested throughout the term and the balance at the end of the term reverts back to the donor.
Benefits of a charitable term trust:
- Receive an immediate tax deduction accelerated to the first year of the trust for all charitable gifts being made over the life of the trust.
- Contribute almost any type of asset, including cash and high basis stock.
- Provide a stream of income to Duke for any program you choose.