Concept
The donor sets up a trust with cash or other assets for a set number of years or until death. The Mount receives income generated from the trust, with the assets returning to the donor or the designated heir when the trust terminates.
Features
The donor creates one of two types of irrevocable trusts:
- A Charitable Lead Annuity Trust pays a guaranteed dollar amount to the College, leaving the remainder to the donor or other individuals.
- A Charitable Lead Unitrust pays a fixed percentage to the Mount, leaving the remainder to the donor or other individuals.
The trust must pay the annuity amount or a fixed percentage of the trust assets annually to the College for a term of years or over the life or lives of an individual or individuals.
Benefits
- The Mount receives an immediate gift of income.
- The donor or her or his family receives the assets after the term expires.
Tax Consequences
- The donor can receive an income tax deduction for the present value of future payments to the Mount.
- The donor is taxed only on income earned but not distributed to charity, and the amount of realized short-term and long-term capital gains not distributed to charity.
Jean Zimmerman Kotzbauer '64, Director of Development, can help you create a charitable gift plan that will fulfill your financial and philanthropic goals. Contact her at jean_kotzbauer@mail.msj.edu or by phone at (513) 244-4475 or (800) 654-9314 ext. 4475.
The College of Mount St. Joseph is not engaged in rendering legal or tax advising services. For advice and assistance in your specific case, the services of an attorney or other professional advisor should be obtained.