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Protect Your Assets
Charitable Lead Trusts Offer You Options
You can benefit from the tax savings that result from supporting AtWork! without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to AtWork!:
A charitable lead annuity trust pays a fixed amount each year to AtWork! 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 AtWork! go up as well.
An Example of How It Works
George would like to support AtWork! 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 AtWork! 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 AtWork! 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 Dennis Maughan at 425-274-4030 or email@example.com to talk about supporting AtWork! by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include AtWork! in your plans, please use our legal name and federal tax ID.
Legal Name: AtWork!
Address: 1935 152nd Place NE, Bellevue, WA 98007
Federal Tax ID Number: 91-0996632