Charitable Lead Trusts
How it Works
- You transfer cash, securities, or other property to a trust. You receive a gift tax deduction.
- During its terms, the trust pays a fixed amount each year to Cooper Union.
- When the trust ends, its remaining principal passes to your family or other heirs you name. Trust growth passes to them tax-free.
This intergenerational wealth-transfer tool enables you to provide for your heirs – and for The Cooper Union – while sharply reducing gift and estate taxes. Because The Cooper Union benefits first, the trust assets can go to your heirs later at a reduced gift and estate tax cost.
- Federal gift and estate-tax deductions for the value of annual trust payments to The Cooper Union may enable you to transfer to your heirs a larger estate after tax than would otherwise be possible.
- Any appreciation in the assets during the term of the trust, while subject to capital gains tax, is not subject to gift or estate tax at the trust’s termination.
- The amount and term of the payments to The Cooper Union can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
For more information about charitable lead trusts, please contact Donna Lippman, Director of Planned Giving, at (212) 353-4172 or firstname.lastname@example.org.