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Charitable Lead Trusts

How it works

You contribute cash, securities or other property to a trust.

The trust makes fixed annual payments to Mercy Foundation North for a specified term of years.

When the trust ends, the remaining principal goes to your heirs.

Benefits

  • You receive a gift-tax deduction for the present value of the annuity payments to Mercy Foundation North.
  • The annuity payments and the term of the trust can be specified to help reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
  • All trust appreciation will be tax-free to your heirs.
  • You can use your available estate-tax credit to further reduce taxes on transfers to your heirs.
  • You can make a significant gift to Mercy Foundation North now and reduce the taxes due on transfers to your heirs later.

Consider a charitable lead trust if you:

  • Have appreciating assets that you want to pass on to the next generation
  • Want to reduce your gift and estate taxes
  • Plan to preserve the value of your estate, not increase your income or reduce your income tax
  • Want to give your family more of your estate over a longer period of time
  • Want your gift to provide a stream of income to Mercy Foundation North

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