Charitable Lead Trust

Protect Your Assets

You can benefit from the tax savings that result from supporting Zaytuna College without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.

There are two ways that charitable lead trusts make payments to Zaytuna:

A charitable lead annuity trust pays a fixed amount each year to Zaytuna 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's assets go up in value, for example, the payments to Zaytuna go up as well.

See How It Works

An Example of How It Works

Father smiling with childrenMusa would like to support Zaytuna and provide for his children. Musa received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, Musa funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Musa's trust pays $70,000 (7 percent of the initial fair market value) to Zaytuna each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Musa. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, Musa receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

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See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.

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