Planned Giving: Charitable Lead Trusts Illustration
How it works
You contribute securities or other appreciating assets to a charitable lead trust.
The trust makes annual payments to Physicians Committee for Responsible Medicine for a period of time.
When the trust terminates, the remaining principal is paid to your heirs.
- The present value of the income payments to PCRM reduces your gift/estate tax.
- All appreciation that takes place in the trust goes tax-free to your heirs.
- The amount and term of the payments to PCRM can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
- You have the satisfaction of making a significant gift to PCRM now that reduces the taxes due on transfers to your heirs later.
For more information