Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting the Arizona State University Foundation through a charitable lead trust. This allows you to give without giving up assets you would like your family to receive one day.
There are two ways that charitable lead trusts make payments to ASU:
A charitable lead annuity trust pays a fixed amount each year to ASU 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 ASU go up as well.
An Example of How It Works
George would like to support ASU 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 percent of the initial fair market value) to ASU 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 $873,110. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
George's trust pays $175,000 (7 percent of the initial fair market value) to ASU each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.
*Assuming annual payments and a 2.4 percent charitable midterm federal rate.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
- Contact The Office of Estate and Gift Planning at 480-965-5338 or firstname.lastname@example.org to talk about supporting ASU by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include ASU in your plans, please use our legal name and federal tax ID.
Legal Name: ASU Foundation for A New American University
Address: P.O. Box 2260, Tempe, AZ 85280
Federal Tax ID Number: 86-6051042
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The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.