Charitable Lead Trust (for Family)
If you are looking for a way to pass on some of your assets to your family while reducing or eliminating gift or estate taxes, a charitable lead trust is an excellent option.
Charitable Lead Trust
Property
Lead Trust
Income to Salvation Army
Trust to Family
Benefits of a charitable lead trust
- Receive a gift or estate tax charitable deduction
- Pass inheritance on to family at a reduced or zero cost
- Establish a vehicle from which you can make annual gifts to charity
How a charitable lead trust works
- You make a contribution of your property to fund a trust that pays The Salvation Army Indiana Division income for a number of years.
- You receive a gift or estate tax deduction at the time of your gift.
- After a period of time, your family receives the trust assets plus any additional growth in value.
Types of charitable lead trusts
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 transfer taxes. 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 than the payments made to The Salvation Army Indiana Division over the term of the trust, then the full value of the trust may be transferred to family with zero gift tax.