Provide for Your Loved Ones and DSJ
Do you want to benefit from the tax savings that result from supporting DSJ, yet you don’t want to give up any assets that you’d like your family to receive someday? You can have it both ways with a charitable lead trust (You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the gift tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost).
There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to DSJ 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 DSJ go up as well.