Charitable Lead Trusts
A charitable lead trust is a way to help Safe Horizon now while still leaving assets to your heirs.
How a Charitable Lead Trust works:
Step 1: You contribute cash, securities or other property to a trust.
Step 2: The trust makes fixed annual payments to Safe Horizon for a specified term of years.
Step 3: When the trust ends, the remaining principal goes to your heirs.
Charitable Lead Trusts - Benefits to You
- You qualify for a gift tax deduction for the present value of the annuity payments to Safe Horizon.
- The annuity payments and the trust term may be written 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 to further reduce taxes on transfers to your heirs.
- You can have the satisfaction of making a significant gift to Safe Horizon now and reduce the taxes due on transfers to your heirs later.