Charitable Lead Trusts: The Best Time to Make This Gift
The charitable midterm federal rate (the interest rate used in calculating the amount of the gift subject to tax) was the lowest it has ever been in December 2010. The rates are still low, meaning a higher tax savings for funding a charitable lead trust. The best gift tax breaks, combined with assets that may be depressed in value temporarily, create the perfect opportunity to consider a lead trust.
The tax savings is in the form of gift-estate taxes, not income taxes. So this strategy may be right for you if you’re in a situation where your wealth would most likely be subject to estate taxes at your death. Creating a charitable lead trust can provide you with significant tax relief while providing PETA with financial support.
Your legal and tax advisors can help you determine whether a charitable lead trust is right for you. We’re also happy to answer any questions you may have. Just contact Tim Enstice at 757-962-8213 or firstname.lastname@example.org.