Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting the Unitarian Universalist Association without giving up the assets that you would 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 the UUA:
A charitable lead annuity trust pays a fixed amount each year to the UUA 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 the UUA go up as well.
An Example of How It Works
Andy would like to support the UUA and provide for his children. Andy received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, Andy funds a grantor charitable lead annuity trust with assets valued at $1,000,000.
Andy's trust pays $70,000 (7% of the initial fair market value) to the UUA each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Andy.
He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, Andy receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Discover Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 65, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
Calculate Your Benefits
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