Charitable Lead Trust

You are at: Legacy Giving > Charitable Lead Trust

Protect Your Assets

You can benefit from the tax savings that result from supporting the Academy Center of the Arts 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 the Academy:

• A charitable lead annuity trust pays a fixed amount each year to the Academy 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 the Academy go up as well.

An Example of How It Works

George would like to support the Academy and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to the Academy each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.

Example for illustration purposes only. Deductions and calculations will vary depending on your personal circumstances.

Learn More

We’re here to help! If you have any questions about giving options, please contact our development office at membership@academycenter.org. 

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.