Provide for Your Loved Ones and the Organizations You Love
Do you want to benefit from the tax savings that result from supporting Horizons, yet you don't want to give up any assets that you'd like your loved ones to receive someday? You can have it both ways with a charitable lead trust.
There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to Horizons 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, the payments to Horizons go up as well.
Legacy Giving in Action
Hector would like to support Horizons Foundation’s work in the LGBTQ community now, and pass accumulated assets on to his heirs after his lifetime. Following his advisor's recommendation, Hector funds a charitable lead annuity trust with assets valued at $800,000. Hector's trust pays $56,000 (7 percent of the initial fair market value) to Horizons each year for 15 years, which will total $840,000. After that, the balance in the trust goes to his heirs. His gift tax deduction is $698,488* against the $800,000 of assets.
Therefore, only the difference ($101,512) is subject to gift tax, which is offset against his lifetime gift tax exclusion. After that, the remaining trust assets and all of their growth will pass to his family at zero additional cost in gift and estate taxes. Hector’s CLT has helped him make a significant contribution to the LGBTQ community, while providing for his family’s financial future.
*Assuming annual payments and a 2.4 percent charitable midterm federal rate.
- Contact Deb Stallings at 415.398.2333 x103 or email@example.com to talk about supporting Horizons by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Horizons in your plans, please use our legal name and Federal Tax ID.
Legal Name: Horizons Foundation
Address: 550 Montgomery Street, Suite 700 San Francisco, CA 94111
Federal Tax ID Number: 94-2686530