Provide for your loved ones and
Walla Walla University
Charitable lead trusts
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Do you want to benefit from the tax savings that result from supporting Walla Walla University, yet don’t want to give up any assets that you would like your family to receive someday? You can have it both ways with a charitable lead trust.
There are two ways charitable lead trusts make payments:
- A charitable lead annuity trust pays a fixed amount each year to Walla Walla University 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 assets go up in value, for example, the payments to Walla Walla University go up as well.
Check out this potential scenario
George would like to support Walla Walla University 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 Walla Walla University 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 $614,450. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,579,621 at the end of the trust term.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate your benefits
Submit a few details and see how a charitable lead trust can benefit you.
- Contact Dorita Tessier, CFRE, CSPG at (509) 527-2646 or firstname.lastname@example.org to talk about supporting Walla Walla University by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Walla Walla University in your plans, please use the legal name and federal tax ID.
Legal name: Walla Walla University
Address: 204 South College Avenue, College Place, WA 99324
Federal tax ID number: 91-0617727
Information contained herein was accurate at the time of posting. 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. California residents: 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. Oklahoma residents: 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. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.