Charitable Remainder Trust
A charitable remainder trust created during your lifetime provides an opportunity for you to make a significant gift to University of Lynchburg and receive income that is invested to keep pace with inflation. When the trust ends, the assets (or a portion) remaining in the trust become the property of LC.
In the year you place assets into the trust, you are allowed to claim an income tax charitable deduction. You can also create a charitable remainder trust in your will, providing income for your family members for their lives.
Funding a charitable remainder trust upon your death with retirement plan assets can be especially attractive. Under current tax law, if you leave your retirement plan assets to heirs, those assets are first subject to estate taxes, then to income taxes – frequently resulting in a combined tax burden of over 70 percent. Much of this can be avoided by placing the assets into a charitable remainder trust, effective upon your death.
We can help you design a charitable remainder trust to fit your individual needs.
- Lifetime income (often greater than your previous yield).
- A sizable income tax charitable deduction.
- Avoidance of capital gains tax if you donate appreciated securities.
- Professional management of the assets frees you from investment responsibilities.
Charitable Lead Trust
Substantial tax benefits may be realized by establishing a charitable lead trust. Income payments from the trust first go to University of Lynchburg for a number of years, and then the trust principal goes to children, grandchildren or other loved ones. Any growth of the trust is free of additional taxes.
- Can be funded during your lifetime or through your will.
- You support our mission through annual income payments.
- Reduces your taxable estate and potential gift taxes.
- Assets can be kept in the family.
Wealth Replacement Trust
We can also help you design a wealth replacement trust (also called a dynasty trust) in which any assets that are given to University of Lynchburg can be replaced by life insurance – at no additional expense to you – so that your loved ones will receive a full inheritance and you will have left a significant legacy to LC.