Touching Lives: Estate Planning and your Community Theatre |
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Legacy Giving:
Support the Theatre with an Affordable Gift
Support the Theatre with a gift that pays you income
Support the Theatre with a gift that allows you to keep control of your assets |
| Charitable Lead Trusts |
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If you desire to make a current contribution to support the Theatre, but want to control the eventual distribution of assets you may want to consider a planning vehicle such as a Charitable Lead Trust.
A Charitable Lead Trust is used to provide current income as a recurring, annual “Touching Gift” to the Theatre and, at the termination of the trust, the remaining assets go to your beneficiaries The current income can be set up to provide a percentage of the trust assets to the Theatre each year (a Unitrust) or a fixed amount (an Annuity Trust).
How a Charitable Lead Trust works: |
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You create a charitable lead unitrust or annuity trust and transfer assets to it. The trustee invests the assets to provide a payout to the Theatre for a period of years. You decide how large the payout will be and for how long when you create the trust. When the trust term ends, whatever remains in the lead trust passes to your heirs. |
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The benefits of a Charitable Lead Trust includes: |
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- Major gift support for the many wonderful programs at the Theatre. And you can choose which ones you want to support!
- A large gift/estate tax deduction for you, which may enable you to pass along far more to your heirs than would otherwise be possible.
- Income taxes saved because the income diverted to the Theatre is removed from your taxable income.
- The trustee is responsible for the management of the assets used to fund the trust. If you like managing investments yourself, you may wish to be the trustee.
- A Charitable Lead Trust can be a solution to the problem of passing a family business, or an income-producing building, along to the next generation.
- The amount and term of the payments to San Juan Community Theatre can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
- All appreciation that takes place in the trust goes tax-free to the individuals named in your trust.
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