Charitable Lead Trusts

How it works

  1. You contribute cash, securities or other property to a trust.
  2. The trust makes fixed annual payments to one of the tax-exempt organizations* for a specified term of years.
  3. When the trust ends, the remaining principal goes to your heirs.

Benefits

  • You qualify for a gift tax deduction for the present value of the annuity payments to the tax-exempt organization*.
  • You can adjust the annuity payments and the term of the trust to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
  • All appreciation that takes place in the trust goes tax-free to your heirs.
  • You can use your available estate tax credit ($2.0 million per person beginning in 2006) to further reduce taxes on transfers to your heirs.
  • You can have the satisfaction of making a significant gift to the tax-exempt organization* now that reduces the taxes due on transfers to your heirs later.

Read more detail.

To learn more about charitable lead trusts, email us, complete the Information Request Form, or call us at 888.252.6363 so that we can assist you.

*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.

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