Charitable Lead Trust

A charitable lead trust can be used to transfer assets to children or others at a significantly reduced tax liability.

The trust makes a fixed payment to Bluffton for a specified term, measured either by someone's life or a selected number of years. After the trust term ends, the assets of the trust are either returned to you or passed on to children or other beneficiaries.

If the assets are returned to you, you receive an income tax deduction when the trust is created. If the assets are passed on to heirs, applicable estate or gift taxes on the value of the gift are reduced or completely eliminated. The tax savings from a charitable lead trust may allow you to provide significant support for Bluffton at little or no cost to heirs.

A charitable lead trust may provide either a fixed "annuity" payment or a variable "unitrust" payment to Bluffton. Low interest rates make the annuity payment option attractive for donors as more assets may be passed on to heirs.

A charitable lead trust can be a powerful tool in gift and estate tax planning, but the legal requirements call for careful consideration. Bluffton's development office, with support from the Mennonite Foundation - an Affiliate of Everence, is glad to work with you and your financial advisors to see if a charitable lead trust is the right plan for you.