Charitable Lead Trust
Protect Your Assets and Help People Facing Hunger
Do you want to benefit from the tax savings that result from supporting Feeding America without giving up the assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.
This gift allows you to make a significant gift to Feeding America and transfer assets to one or more beneficiaries. Income payments from the trust would go to Feeding America for a specific number of years. After the term of the trust, the remaining assets go to your beneficiaries.
There are two ways that charitable lead trusts make payments to Feeding America:
A charitable lead annuity trust pays a fixed amount each year to Feeding America 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 Feeding America go up as well.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
An Example of How It Works
George has two boys and can't imagine them going to bed hungry. He would like to support Feeding America 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% of the initial fair market value) to Feeding America 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 $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term. George not only benefits financially, he gets the satisfaction of knowing he's made a difference to children like his who struggle to get enough to eat.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Jessica Noe at 800-771-2303, Ext. 5593 or firstname.lastname@example.org to talk about supporting Feeding America by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Feeding America in your plans, please use our legal name and federal tax ID.
Legal Name: Feeding America
Address: 161 N. Clark Street, Suite 700, Chicago, IL 60601
Federal Tax ID Number: 36-3673599
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.