Some individuals would like to see the Surfrider
Foundation have use of their gift now, while also reserving benefits from the
gift for family members to use later. Charitable Lead Trusts are
essentially the opposite of charitable remainder trusts. In this
arrangement, a donor contributes property irrevocably to a trust. The
trustee pays an income to a charity such as the Surfrider Foundation for the
donor’s lifetime or over a period of years. At the end of the term,
the trust property is distributed back to the donor or to the donor’s
heirs.
The primary estate planning advantage of charitable lead trusts is that the
property contributed is valued for estate and gift tax purposes as of the date
of contribution. This means that if you have an asset this is likely to
appreciate substantially in value over time and from which you do not need the
income - such as real estate – you may wish to remove it from your estate
now by contributing it to a charitable lead trust. When your heirs
receive it they will not have to pay gift or estate tax on the increase in
value between the date of contribution and the date of distribution.
This type of gift plan can be complex but works very well in testamentary
planning. Some individuals set up several charitable lead trusts varying
the timing of distribution assets to loved ones. Reducing estate tax,
timing the receipt of an inheritance, and providing for a charitable gift are
just a few of the objectives that can be met through the use of a charitable
lead trust.
To learn more contact Steve Blank, Surfrider Foundation’s Director of
Development at 800-743-SURF x. 40 or info@surfrider.org
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