Planned Giving

Charitable Lead Trusts

The charitable lead trust generates income for Organizations friendly to BJU M&G* now, while reducing your tax costs for transferring assets to the next generation. The lead trust holds gift assets for your lifetime or for a term of years, and pays annual income to us. Organizations friendly to BJU* benefit from the assured income stream from the lead trust, while your family enjoys several tax advantages:

  • The gift assets placed in the lead trust are frozen in value for transfer-tax purposes as of the date the trust is formed. When the trust terminates and the assets pass to your family, all intervening appreciation will escape gift and estate tax.
  • Our income interest further reduces the taxable value of the trust assets when they pass to your family. This feature makes the lead trust especially useful if you are holding assets likely to appreciate significantly before they are transferred to the next generation.

*BJU does not qualify as a 501(c)(3) tax-exempt organization, and gifts to it may not be deducted for federal income, gift, or estate tax purposes. The BJU M&G, MSF, HAF, DNSF, S&E Endowment Fund, and GFA are all 501(c)(3) tax-exempt organizations, and gifts to these organizations may be deducted for federal income, gift, or estate tax purposes. All gifts above marked by an asterisk can be established only for the BJU M&G, MSF, HAF, DNSF, S&E Endowment Fund, or GFA, but not for BJU.

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