Charitable Lead Trusts

Joyce and Burton know what hard work is all about. And they have the rewards as a result.

Joyce: "I was one of the lucky ones. It was a very tough time for me and my family. Public radio provided a kind of retreat for me. I could listen and forget about my troubles and the world around me.

Burton: "We know how important the work of a charity is to a community. And we know how difficult it is for them to develop the funding they need. Facilities, up-to-date equipment, getting staff - it's Joyce and Burtonall literally urgent because where else can you find quality broadcasting."

Joyce: "We benefited because others before us had given their time and their dollars - now we can give back. And what a joy it is to know that while we no longer need the income, it is going to someone who does. It's awesome - we are helping to change lives now and yet the assets will be there for our children after we're gone!"

Burton: "That's why Joyce and I made the decision. The trust will provide income for the station and we can see the benefits it provides while we are here. But we have the peace of mind knowing that our estate will be there to help our immediate family after we're gone."

A charitable lead trust is often described as the opposite of a charitable remainder trust. It is a gift plan that enables you to transfer assets to your heir or heirs often at a reduced tax basis or cost and also make a gift to the charity you desire. A charitable lead trust is established by irrevocably transferring assets into the trust.

A trustee (either you or someone you name) invests the assets of the trust and pays annually a fixed percentage of the trust's value to the charity or charities named to benefit by the trust. The income received by the charity (ies) may be used for general purposes or for the purpose designated when you established the trust.

The trust is established for a fixed number of years. After the term of the trust has ended, the assets in the trust are distributed according to your wishes. Any increase in the value of the assets held by the trust would be distributed free of addidtional estate or gift tax to your beneficiaries.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use (download). The content in this Planned Giving section has been developed for WBGO and is owned by Future Focus. Please report any problems to section webmaster (email).