Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Claremont Graduate University 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 CGU:
A charitable lead annuity trust pays a fixed amount each year to CGU 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 CGU go up as well.
Imagine the Following Scenario
You would like to support CGU and receive tax benefits. You received a windfall amount of income and needs a large income tax deduction to offset it. Following your advisor’s recommendation, you fund a grantor lead annuity trust with assets valued at $1,000,000. Your trust pays $60,000 (6% of the initial fair market value) to CGU each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to you. You receive an income tax charitable deduction of $770,960. Assuming the trust earns an average 8% annual rate of return, you receive approximately $1,637,530 at the end of the trust term.
*Based on a 2.0% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Claremont Graduate University at (909) 621-8027 or email@example.com to talk about supporting CGU by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include CGU in your plans, please use our legal name and federal tax ID.
Legal Name: Claremont Graduate University
Address: 165 E. 10th Street, Claremont, CA 91711
Federal Tax ID Number: 95-1664100
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
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Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
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Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.