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 MVCDS 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 loved ones. If the assets are to be 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 Maumee Valley Country Day School at little or no cost to heirs in terms of ultimate inheritance.
A charitable lead trust may provide either a fixed “annuity” payment or a variable “unitrust” payment to the school. Low interest rates make the annuity payment option attractive for donors as more assets may be passed on to heirs with reduced or eliminated transfer tax liability.
For more information or illustrations contact Michael House, Interim Director of Advancement at 419-381-1313 x117.