Charitable Lead Trust (for Family)
A Charitable Lead Trust (CLT) is an irrevocable trust that pays an income stream to The Ohio University Foundation for a period of time and then transfers the remainder to the named beneficiaries. You can make a current gift to The Ohio University Foundation and pass wealth to the next generations with reduced tax liability.
Benefits of a charitable lead trust
- Receive a gift or estate tax charitable deduction
- Pass inheritance on to family at a reduced or zero cost
- Create immediate impact with current gifts to The Ohio University Foundation
How a charitable lead trust works
- Transfer assets to fund your CLT to pay income for a number of years to The Ohio University Foundation for your designated purpose.
- Receive a gift or estate tax deduction at the time of your gift.
- After a period of time, your family or named beneficiaries will receives the trust assets plus any additional growth in value.
If you have any questions about charitable lead trusts, please contact us. We would be happy to assist you and answer any questions you might have and to provide you with an illustration demonstrating your specific tax benefits.
Zero Tax Plan - It is even possible to set up a lead trust that will allow you to transfer assets to your family with zero transfer taxes. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return than the payments made to The Ohio University Foundation over the term of the trust, then the full value of the trust may be transferred to family with zero gift tax.
FLP/Lead Trust Plan - To discount your gift to family even more, you may consider first transferring your real estate or other assets into a family limited partnership (FLP), which will fund your lead trust. The combination of the FLP, the lead trust and a gift exemption can permit the lead trust to pay income to us for a number of years and potentially transfer substantial assets tax-free to your family.
Grantor Lead Trust - A grantor lead trust permits you to transfer your cash or assets to a trust that will make gifts to charity for a number of years. At the end of the trust term, you receive the assets back from the trust.