Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Notre Dame Preparatory School without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to NDP:
A charitable lead annuity trust pays a fixed amount each year to NDP 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 NDP go up as well.
An Example of How It Works
Rita would like to support NDP and provide for her children. Rita received a windfall amount of income and needs a large income tax deduction to offset the income. Following her advisor's recommendation, Rita funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Rita's trust pays $70,000 (7 percent of the initial fair market value) to NDP each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Rita. SHe receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, Rita 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.
Not Sure How to Begin Planning?Download My FREE Personal Estate Planning Kit
- Contact Kristen S. Kinkopf, J.D. at 410-583-8797 or email@example.com to talk about supporting NDP by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include NDP in your plans, please use our legal name and federal tax ID.
Legal Name: Notre Dame Preparatory School
Address: Towson, MD
Federal Tax ID Number: 52-0733735
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