Skip to main content

CHARITABLE LEAD TRUST

PROTECT YOUR ASSETS

If you want to make an impact now at the YMCA of the Fox Cities and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to the YMCA of the Fox Cities for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.

There are two ways that charitable lead trusts make payments to the YMCA of the Fox Cities:

charitable lead annuity trust pays a fixed amount each year to the YMCA of the Fox Cities and is more attractive when interest rates are low.

charitable lead unitrust pays a variable amount each year to the YMCA of the Fox Cities 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 the YMCA of the Fox Cities go up as well.


 

Create a Charitable Remainder Trust for the YMCA of the Fox Cities

AN EXAMPLE OF HOW IT WORKS

George would like to support the YMCA of the Fox Cities and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to the YMCA of the Fox Cities each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $639,970. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,534,987 at the end of the trust term.

*Based on a 4.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.


FUND YOUR DONATION WITH:

CASH APPRECIATED SECURITIES 

CLOSELY HELD STOCK REAL ESTATE