Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting D.A. Blodgett - St. John's 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 D.A. Blodgett - St. John's:
A charitable lead annuity trust pays a fixed amount each year to D.A. Blodgett - St. John's 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 D.A. Blodgett - St. John's go up as well.
An Example of How It Works
George would like to support D.A. Blodgett - St. John's and provide for his children. 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 $70,000 (7 percent of the initial fair market value) to D.A. Blodgett - St. John's each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $873,110. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
George's trust pays $175,000 (7 percent of the initial fair market value) to D.A. Blodgett - St. John's each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.
*Assuming annual payments and a 2.4 percent charitable midterm federal rate.
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- Contact Kate Frillmann at 616-361-4117 or firstname.lastname@example.org to talk about supporting D.A. Blodgett - St. John's by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include D.A. Blodgett - St. John's in your plans, please use our legal name and federal tax ID.
Legal Name: D.A. Blodgett - St. John's
Address: 805 Leonard Street NE, Grand Rapids, MI 49503
Federal Tax ID Number: 38-1358163
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