Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Assistance League of Long Beach 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 Assistance League of Long Beach:
A charitable lead annuity trust pays a fixed amount each year to Assistance League of Long Beach 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 Assistance League of Long Beach go up as well.
An Example of How It Works
George would like to support Assistance League of Long Beach and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7% of the initial fair market value) to Assistance League of Long Beach each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
Not Sure How to Begin Planning?Download My FREE Personal Estate Planning Kit
- Contact Annette Kashiwabara at (562) 627-5650 or annette@ALLB.org to talk about supporting Assistance League of Long Beach by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Assistance League of Long Beach in your plans, please use our legal name and federal tax ID.
Legal Name: Assistance League of Long Beach
Address: 6220 East Spring Street, Long Beach, CA 90815
Federal Tax ID Number: 95-1660324
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide