Tom and Michelle worked for many years building their nest egg for retirement. While they felt their savings and investments would cover their needs, they wanted to make sure that their three children were provided for in the future.
Michelle: We wanted to continue making annual gifts to the Allentown Symphony Association. But I was concerned about sacrificing our children's inheritance.
Tom: Our stock portfolio had appreciated significantly over the years. I wanted to pass these gains on to my kids without paying a lot in gift or estate tax.
Tom and Michelle felt that a charitable lead trust could help them achieve their personal and charitable giving goals. The trust would pay income to the Allentown Symphony Association for a number of years. Then the full trust value, plus any growth, would go to their children. This would allow them to pass on substantial wealth to their family with little or no gift tax. It would also reduce the size of their estate in addition to helping the Allentown Symphony Association further its work.
Michelle: I could see how this plan would be very helpful if the trust was funded with our stock. Each of our children would receive one-third of the trust assets in the future. At the same time, we would continue to make gifts to charity each year.
Tom: It would also give our children time to learn how to save and invest their future inheritance.
A charitable lead trust can be an excellent part of many tax-planning strategies. If you have questions about lead trusts, please contact us.
