Flo's Legacy Fund
CHARITABLE LEAD TRUST
This is a trust that provides income to the charity on an annual basis. The principal balance of the trust reverts to the donor's family after a specified period of time.
DONOR PROFILE: Moderate to very wealthy contributor with significant taxable income. Most of their wealth is concentrated in stock or real estate.
ESTATE VALUE: $1,000,000+
ANNUAL INCOME: Moderate - High
SUITABLE ASSETS: Cash and income producing assets (stocks and bonds)
ADVANTAGES TO DONOR: Regain (or transfer to others) trust assets at termination of trust. Income tax or estate tax deduction for "present value" of income stream to charity. Contributor may wish take advantage of Generation skipping tax.
DONOR CONTROL: Donor can be trustee.
BENEFITS TO CHARITY: Irrevocable payments for trust term.
DISPOSITION OF INCOME: Annual income to charity for term of trust only.
DISPOSITION OF PRINCIPAL: At termination of trust, principal transferred to person designated by donor in trust agreement.