A charitable lead trust can provide significant charitable
and tax benefits. During the term of the trust, a percentage
of the assets is paid out each year to the University program
of your choice, and at the end, all of the remaining assets
can return to you or pass to your heirs. Gift or estate tax
paid on this gift can be reduced because the present value
of the payments to the U is subtracted from the value of the
gift.
This can be an excellent way to support the University of
Minnesota and to pass on family business interests or other
appreciating assets to family members with reduced taxes.
Ability to provide a stream of income to benefit the
University for a set number of years. At the end of the
term, the remaining trust property goes to your heirs.
Potential to reduce substantially the gift or estate
tax on the ultimate transfer to your heirs.
Option to delay transferring assets to your heirs until
they are adults.
