Charitable Lead Trust
A charitable lead trust allows the donor to retain ultimate possession of an asset while making a generous gift to Linfield College.
Donors transfer assets to Linfield creating a trust that provides an income interest to Linfield for a specified period of time (up to 20 years). Once the trust's term has expired, the remainder is either returned to the donor or paid to the donor's heirs.
A lead trust can provide significant income or estate tax benefits and is often used to pass property economically to heirs. When the property passes to an heir(s) it is valued at the present value, not the fair market value at the time the heir(s) receive the property. Additionally, the donor will receive an income tax deduction equal to the value of the income stream promised to Linfield.
Jim and Ruth Howland created a charitable lead trust to support Linfield and leave a gift for their children that came with tax savings. Jim was also excited to, "take advantage of the excellent record Linfield has in managing trust funds for growth."
Gross Principal: $1,000,000
| Trust payout: 6% |
Gift tax deduction: $689,610 |
| Trust term: 20 years |
Total distributed to Linfield: $1,457,842 |
| Income to Linfield: $72,892 |
Benefit to family from trust: $1,315,233 |
For further information on charitable planned giving, contact Craig Haisch '95, director of planned giving, by
email or at 503-883-2675.
This information provided on this website is not intended as legal, investment or tax advice. We strongly encourage you to contact your financial professionals when making a charitable contribution.