Charitable Lead Trusts

 

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 Ackerman Institute for the Family 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 The Ackerman Institute for the Family.
  • 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 The Ackerman Institute for the Family now and reduce the taxes due on transfers to your heirs later.