Charitable Lead Trusts

Do you want to benefit from the tax savings that result from supporting the Archdiocese of Milwaukee, yet you are reluctant to permanently transfer assets that you'd like your family to receive someday? Consider a Charitable Lead Trust.

A Charitable Lead Trust is similar to a Charitable Remainder Trust but, instead of passing to charity at the end of the trust term, the trust assets revert to the donor (or are paid to designated beneficiaries) at the end of the trust term.  During the term of the trust, the charity receives a stream of income in a specified amount or a specified percentage of the value of the trust assets.  Depending on how the trust is structured, the donor may be able to claim an income tax deduction in the year the trust is established in an amount equal to the present value of the future gifts to charity. 

Benefits

• You support the Archdiocese and provide for your family.
• Income tax deductions can be significant.
• The amount and term of payments to the charity can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
• All appreciation that takes place in the trust passes tax-free to the individuals named in the trust.

How It Works

• You give assets (typically securities or other appreciating assets) to a trust that pays the Archdiocese of Milwaukee an income stream for a number of years, which you choose. The longer the length of time, the better the tax savings may be to you.
• The trust makes annual payments to the Archdiocese.
• When the term is up, the remaining trust assets pass to you, your family or other beneficiaries you select.

Of all the charitable vehicles available to you, this is among the most complex. Your legal and tax advisors can help you determine whether a charitable lead trust is right for you.

Contact us so we can assist you through every step.