Charitable Lead Trust
You can benefit from the tax savings that result from supporting the YMCA of the Suncoast without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to the Y:
A charitable lead annuity trust pays a fixed amount each year to the Y and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to the Y go up as well.
An Example of How It Works
George would like to support the Y and receive tax benefits. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George’s trust pays $60,000 (6% of the initial fair market value) to the Y each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,450. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,579,621 at the end of the trust term.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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- Contact W. Ben Prewitt at (727) 467-9622 or firstname.lastname@example.org to talk about supporting the Y by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Y in your plans, please use our legal name and federal tax ID.
Legal Name: Young Men's Christian Association of the Suncoast, Inc.
Address: 2469 Enterprise Rd, Clearwater, FL 33763
Federal Tax ID Number: 59-0810731
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide