Charitable Lead Trust
A charitable lead trust is an irrevocable trust designed to reduce the
taxes on the assets eventually transferred to your loved ones. A percentage
of the trust's value is donated to Jupiter Medical Center for a specified
period of time. At the end of the trust's term, the remainder is passed
on as directed to children, grandchildren, or others. In addition:
- The gift qualifies for gift or estate tax savings based on the current
value of the income paid to the Center over the trust term. (Consult your
legal and tax advisors for more information about your possible tax savings.)
- Any appreciation in assets during the term of the trust, while subject
to potential capital gains tax, is not subject to gift or estate tax at
the trust's termination.
- You provide crucial support to the ongoing mission of Jupiter Medical Center
while also making sure your family is taken care of after your lifetime.
Options to Consider
A charitable lead trust can make payments in one of two ways:
- Charitable Lead Annuity Trust. This type of trust pays a fixed amount each
year to Jupiter Medical Center and is more attractive when interest rates are low.
- Charitable Lead Unitrust. A less common choice, this type of trust pays
a variable amount each year based on the value of the assets in the trust.
Charitable lead trusts generally begin in amounts of $250,000 or more and
are particularly attractive if you anticipate your estate may be subject
to federal estate taxes.