Gifts That Pass Assets To Heirs

A charitable lead trust is the reverse of an income-retained gift. You make a gift that creates an income for the School of Law for a fixed term not to exceed 20 years. At the end of the trust term, the trust distributes the trust assets to designated non-charitable beneficiaries, usually children or grandchildren (or trusts for their benefit). By establishing a charitable lead trust, the donor is, in effect, "lending" the assets to Washington and Lee for the term of the trust. The benefits of this gift arrangement are primarily for reduction or elimination of the transfer taxes (estate and/or gift taxes) imposed on the transfer of assets to children or others at the end of the trust, and the ability to make a current gift to the School of Law without giving away your property.

The charitable lead trust can be a very powerful tool in gift and estate tax planning, but its complexity requires careful consideration of the technical requirements of this form of gift. For more information, please contact Elizabeth Branner (brannere@wlu.edu) at (540) 458-8191, (540) 458-8488 fax