Charitable Lead Trust
A Charitable Way
to Pass Assets to Heirs
How it works
You contribute cash, securities or other property to a trust.
The trust makes fixed annual payments to the American Heart Association for a specified term of years.
When the trust ends, the remaining principal goes to your heirs.
- You qualify for a gift tax deduction for the present value of the annuity payments to the American Heart Association.
- The annuity payments and the term of the trust can be specified in such a way so as to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
- All appreciation that takes place in the trust goes tax-free to your heirs.
- You can use your available estate tax credit (consult with your financial advisor for the current applicable amount) to further reduce the taxes on transfers to your heirs.
- You can have the satisfaction of making a significant gift to the American Heart Association now that reduces the taxes due on transfers to your heirs later.
For more information