Charitable Lead Trusts Passing Wealth to Heirs while supporting NDSU A charitable lead trust allows you to make a future transfer of assets to your heirs at a substantially reduced gift and estate tax cost, while providing an income stream to NDSU for a term of years. How NDSU benefits During
a specified number of years, a fixed or variable income is paid
to the NDSU Development Foundation depending on the
type of trust you establish. You may designate the use of your How your heirs benefit At the end of the trust term, the assets are passed to your heirs, or to a trust for their benefit. This is an especially efficient method to transfer closely-held stock or partnership interests to your heirs. How you save taxes You receive a charitable gift tax deduction for the present value of the annual income payments to the NDSU Development Foundation during the trust term. This deduction may significantly reduce your gift and estate tax liability on the transfer to your heirs. Furthermore, any appreciation of the trust assets over the trust term is not subject to gift or estate tax. How to establish your own charitable lead trust A charitable lead trust can be established with publicly traded securities, closely held stock, income-producing real estate, partnership interests, or a combination of the above. Typically, a lead trust is most effective for high-net-worth individuals who wish to fund the trust with assets valued at 250,000 or more. Your trust can be invested and administered by the NDSU Development Foundation at no cost to you. If you would like to receive more information about charitable lead trusts, please e-mail Scott Barrett or call us at 701-231-6837 or 1-800-279-8971. You can write to us at: |
