Charitable Lead Trust and Charitable Remainder Trust

Charitable Plans

The Charitable Lead Trust
QUALIFICATIONS:WebReferenceBoard3_Charititable Plans.png

  • Interested in a tax deduction: approximately 60% - 100% of contribution
  • Non-qualified assets can only be contributed (assets that have already been taxed)
  • Charitably inclined
  • Sweet Spot: have large IRA and large non – qualified assets for a ROTH conversion

SYNOPSIS:
Contribute monies into Strategy 4. Receive a deduction that can be used to offset an IRA to ROTH conversation. Money is distributed every year to a charity of your choice. After the term has been fulfilled, Strategy 4 will provide remaining assets to the client or elected beneficiaries.

The Charitable Remainder Trust
QUALIFICATIONS:

  • Interested in a tax deduction: approximately 15% - 40% of contribution
  • Charitably inclined
  • Would like to avoid capital gains from sale of an asset and still benefit from asset
  • Non-qualified assets can only be contributed (assets that have already been taxed)

SYNOPSIS:
This is the inverse of a Strategy 4. An individual provides a portion of assets to Strategy 5 and receives a tax deduction. Recurring distributions are received as income to the client. Strategy 5 uses a tax exempt entity to sell appreciated assets – to avoid capital gains. After the term of Strategy 5 has been fulfilled, the remaining value goes to the charity of your choice.