Charitable Lead Trust
A charitable lead trust allows you to support Oceana for several years while passing your assets on to your family, all while potentially eliminating gift or estate taxes.
- Receive a gift or estate tax charitable deduction
- Pass inheritance on to family at a reduced or zero cost
- Establish a vehicle from which you can make annual gifts to Oceana
- You contribute property to fund a trust that provides income to Oceana for a set number of years.
- You receive a gift or estate tax deduction at the time of your contribution.
- After the specified period, the trust assets, along with any growth in value, are transferred to your family.
Lead Trust Options
- Zero Tax Plan: It's possible to set up a lead trust that allows you to transfer assets to your family with no transfer taxes. If the trust's investments generate returns higher than the payments made to Oceana, the full value of the trust could be transferred to your family without any gift tax, as the IRS assumes the trust is earning at the current low federal rate.
- FLP/Lead Trust Plan: To further reduce the tax impact on your gift to family, consider transferring your real estate or other assets into a family limited partnership (FLP), which will then fund your lead trust. This strategy, combining the FLP, lead trust, and gift exemption, can allow the trust to pay income to us for several years while potentially transferring substantial assets tax-free to your family.
- Increasing Payment Lead Trust: Given market volatility, you may want to establish a lead trust that makes fixed, increasing payments to us over time. With these fixed payments, your family can benefit from the trust's growth, while early low payouts allow the trust to grow and offer protection if the economy produces below-average returns in the future.
- Grantor Lead Trust: A grantor lead trust allows you to transfer cash or assets to a trust that will make gifts to our organization for a set number of years. At the end of the trust term, the assets are returned to you.
Please consult your attorney or financial advisor to advise on the best vehicle for you.
Contact us
If you have any questions about charitable lead trusts, please contact us. We would be happy to assist you and answer your questions. [email protected]