Georgia Institute of TechnologyOffice of Development

Charitable Lead Trust
Nongrantor

How Does It Work

  1. Create trust agreement outlining terms of the trust—usually for a term of years

  2. Transfer cash or other property to trustee

  3. Trustee invests and manages trust assets

  4. Trustee makes annual payments to the Georgia Tech Foundation

  5. Remainder transferred to your heirs

Benefits

  • Annual gift to the Georgia Tech Foundation

  • Future gift to heirs at fraction of property's value

  • Professional management of assets during term of trust

  • No charitable deduction, but donor not taxed on annual income

  • Potential gift- and estate-tax savings


Please note: The federal estate tax is currently back in effect through the end of 2012. The top tax rate is now 35%, and the exclusion amount is $5,120,000 per person and $10,240,000 per married couple. Any exclusion amount not used by a spouse who dies after December 31, 2010, is portable and generally may be used by the surviving spouse. It is very important that you seek the advice of your estate-planning attorney to determine what changes, if any, need to be made to your existing estate plans.



Back

© Pentera, Inc. Planned giving content. All rights reserved.