Charitable Lead Trusts

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Transfer assets out of your taxable estate to a trust. In doing so, you reduce estate taxes, provide for family members or other beneficiaries, and freeze, for gift or estate tax purposes, the value of the assets your loved ones will receive at the termination of the trust.

During the term of the trust, your designated trustee invests the trust’s assets and distributes regular annual income to the College for the purposes you designate.  The amount Mount Holyoke receives each year depends on whether the trust is structured as an annuity trust with fixed income or as a unitrust with variable income.

When the trust terminates, the principal passes to family members or other beneficiaries named by you. Any asset growth that occurs within the trust during its term can be distributed to your loved ones free of gift or estate tax.

Benefits
As a lead trust donor, you irrevocably transfer assets—cash, securities, and real estate—out of your taxable estate to a trust. In doing so, you reduce estate taxes, provide for family members or other beneficiaries, and freeze, for gift or estate tax purposes, the value of the assets your loved ones will receive at the termination of the trust. At the end of the trust term, the assets are directed to your heirs with little or no gift or estate tax penalty.

Minimum Gift Amount
Lead trusts are usually funded with assets valued at $1 million and above.

Rates of Return
A donor-appointed trustee manages the charitable lead trust.