Protect Your Assets
Charitable Lead Trusts Offer You Options
You can benefit from the tax savings that result from supporting Southwestern University 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 SU:
A charitable lead annuity trust pays a fixed amount each year to SU 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 SU go up as well.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View Guide
An Example of How It Works
George would like to support SU 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 SU 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 $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
- Contact April Hampton Perez ’89 at 512-863-1485 or email@example.com to talk about supporting SU by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include SU in your plans, please use our legal name and federal tax ID.
Legal Name: Southwestern University
Address: 1001 E. University, Georgetown, Texas 78626
Federal Tax ID Number: 74-1233796
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Calculate Your Benefits
Submit a few details and see how a gift can benefit you.
Not Sure How to Begin Planning?Download My FREE Personal Estate Planning Kit
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.