Planned Giving Menu
Charitable Lead Trust
Are you looking for a way to pass on stock or real estate to your family while reducing your gift or estate taxes? With federal rates at the lowest level in decades, now might be the time for you to create a family charitable lead trust.
How it Works
- You make a contribution of your property to fund a trust.
- The trust pays Texas A&M Foundation for a number of years.
- You receive a gift tax deduction at the time of your gift (or your estate receives a deduction if the trust is created after your lifetime).
- After a period of time, your family receives the trust assets plus any additional growth.
Zero Tax Plan
It is even possible to set up a lead trust that will allow you to transfer assets to your family with zero tax. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return and pay those earnings to charity over a measured number of years, then the full value of the trust may be transferred to family with zero gift tax.