Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting University of the Cumberlands 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 Cumberlands:
A charitable lead annuity trust pays a fixed amount each year to Cumberlands 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 Cumberlands go up as well.
An Example of How It Works
George would like to support Cumberlands and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to Cumberlands each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $686,160. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,619,706 at the end of the trust term.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact William L. Stohlmann at 606-539-3571 or email@example.com to talk about supporting Cumberlands by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Cumberlands in your plans, please use our legal name and federal tax ID.
Legal Name: University of the Cumberlands, Inc.
Address: 6191 College Station Drive, Williamsburg, KY 40769
Federal Tax ID Number: Contact us for our Federal Tax ID Number.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.