A charitable lead trust will give you tax savings this year, provide years of support for Environmental Defense Fund, and also grow your assets for your family to receive someday.
There are two ways that charitable lead trusts make payments to EDF:
A charitable lead annuity trust pays a fixed amount each year to EDF and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to EDF go up as well.
An example of how it works
George would like to support EDF and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7% of the initial fair market value) to EDF each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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- Contact Cynthia Eubank DiLeo at 877-677-7397 or firstname.lastname@example.org to talk about supporting EDF by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include EDF in your plans, please use our legal name and federal tax ID.
Legal Name: Environmental Defense Fund, Inc.
Address: 257 Park Avenue South, New York, NY 10010
Federal Tax ID Number: 11-6107128
- Share with us that you have included EDF in your plans in order to join the Osprey Society today.