Charitable Lead Trusts
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Do you want to benefit from the tax savings that result from supporting Tower, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.
There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to Tower and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to Tower go up as well.
Check Out This Potential Scenario
George would like to support Tower and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to Tower each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
- Contact Linda David at 310.299.8472 or Linda.email@example.com to talk about supporting Tower by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Tower in your plans, please use our legal name and federal tax ID.
Legal Name: Tower Cancer Research Foundation
Address: 8767 Wilshire Blvd., Suite 401, Beverly Hills, CA 90211
Federal Tax ID Number: 95-4596354