Charitable Lead Trust
Nongrantor
How Does It Work
- Create trust agreement outlining terms of the trust—usually for a term of years
- Transfer cash or other property to trustee
- Trustee invests and manages trust assets
- Trustee makes annual payments to the Georgia Tech Foundation
- 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.