Charitable Lead Trust
Charitable Lead Trusts allow reductions in estate taxes after one's passing. When leaving a charitable lead trust for Baton Rouge General, the Foundation would receive income from assets that a donor places in the trust for a specific period of time. At the end of the trust term, the assets and any growth they have realized are passed to the donor's heirs.
The Tax Benefits
Of all the charitable vehicles available to donors, the charitable lead trust is among the most complex. However, it does offer excellent tax benefits to the estate owner. When the gift is established, the tax paid is the only tax that will ever be due on that transfer.
Example of a Charitable Lead Trust:
An individual transfers $1 million to the trust. The donor does not receive an income tax deduction. Baton Rouge General Foundation receives an income for 20 years with a designated amount of $50,000 each year, which totals a gift to the hospital of $1 million over a 20-year period. At the end of the 20 years, the assets in the trust, which may or may not have grown in value, are then distributed to the individual’s heirs with zero tax penalties.
Whether you are creating a will or updating an old document, Baton Rouge General Foundation recommends that you seek the advice of estate and tax professionals, such as attorneys, accountants, or financial advisors, in developing your estate plan. Baton Rouge General Foundation cannot render tax or legal advice. For more information, please contact Baton Rouge General’s Foundation at Foundation@BRGeneral.org or (225) 763-4372.