How to: Charitable lead trusts

How to establish a Charitable Lead Trust

  1. Identify a valuable and appreciating asset (a special stock or piece of real estate, for example) that produces an income but which you would like to retain and pass to your heirs at minimal or no tax.

  2. Consult with your attorney to draft a lead trust document.  

  3. After all parties to the trust are satisfied with the terms, you transfer the asset into the trust, usually with a third party (like a fiduciary institution) as the trustee.

  4. For the term of the trust (usually a fixed number of years) the trustee will distribute a specifically defined payout to TMI for whatever purpose you and TMI have agreed.

  5. At the end of the trust term, the asset in the trust will pass to your heirs with no additional transfer tax, no matter how much the asset has appreciated.

  6. In this way, you can make a generous gift to TMI over a number of years and preserve your inheritance without worrying about gift or estate tax that might otherwise be imposed.

Have Questions?

For more information on ways to give to TMI or to find out how you can submit your gift to TMI, please contact our Advancement Department, at advancement@tmi-sa.org.

Please remember that when making a financial decision, you should always seek the opinion of your professional tax adviser or legal counsel.
 
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TMI Episcopal
20955 W. Tejas Trail
San Antonio TX 78257
phone (210) 698-7171
fax (210) 698-0715