Charitable Lead Trust

A charitable lead trust is a way you can support Wheaton College for a number of years and pass on your assets to your heirs while eliminating gift or estate taxes.

Benefits of a charitable lead trust

Receive a gift or estate tax charitable deduction.
Pass inheritance on to your heirs at a reduced or zero cost.
Establish a vehicle from which you can make annual gifts to Wheaton.

Charitable lead trust video

How a charitable lead trust works

You make a contribution of your property to fund a trust that pays Wheaton income for a number of years.
You receive a gift or estate tax deduction at the time of your gift.
After a period of time, your heirs receive the trust assets plus any additional growth in value.

Lead trust options

Zero Tax Plan—It is possible to set up a lead trust that will allow you to transfer assets to your heirs with zero transfer taxes. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return than the payments made to Wheaton over the term of the trust, then the full value of the trust may be transferred to heirs with zero gift tax.
FLP/Lead Trust Plan—To further discount your gift to your heirs, you may consider first transferring your real estate or other assets into a family limited partnership (FLP), which will fund your lead trust. The combination of the FLP, the lead trust and a gift exemption can permit the lead trust to pay income to Wheaton for a number of years and potentially transfer substantial assets tax-free to your beneficiaries.
Increasing Payment Lead Trust—With volatility in the stock market, you may want to consider creating a lead trust that makes fixed payments of increasing amounts to the college over time. Because the payments to Wheaton are fixed, your family ultimately benefits from any growth in the trust. Low payouts in early years allow the trust to grow, thus allowing protection should the economy produce below-average returns in the future.
Grantor Lead Trust—A grantor lead trust permits you to transfer your cash or assets to a trust that will make gifts to Wheaton for a number of years. At the end of the trust term, you receive the assets back from the trust.

Gift Date	Month: Day: Year:
Please enter a valid gift date
Gift month field is required
Gift day field is required
Gift year field is required
Rate of the Month
The current Rate of the Month (AFR) will display in the drop down box. Choose one of the three rates offered.
Donor
Donor is required
Beneficiary
Enter the name of the Beneficiary. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", etc.
Beneficiary is required
Term of Years	Years
Enter the term of years the trust will last, i.e., distribute income to the named beneficiary(ies). The term cannot exceed 20 years.
Term of years is required
Trust Amount $
Please enter a valid property value
Property value is required
Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.
Payout	%
Trust payout is required
Payout must be between 5% and 50%
Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.
Payment Frequency
Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.
Under the Internal Revenue Code, the charitable income tax deduction must be at least 10% of the initial value. The payout amount has been lowered to qualify under the IRS 10% deduction test. This calculation includes a safety factor of 0.04%. The deduction factor will be 0.10040 or greater. The Maximum Payout Rate by Crescendo 10% Deduction Test: cres_calc_maxrate10
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Plan for your future and Wheaton's

Your planned gift creates lasting impact and strengthens your financial future.

Charitable Lead Trust

Benefits of a charitable lead trust

Charitable lead trust video

How a charitable lead trust works

Lead trust options

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