Protect Your Assets
You can benefit from the tax savings that result from supporting Stoneleigh-Burnham School 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 Stoneleigh-Burnham:
A charitable lead annuity trust pays a fixed amount each year to Stoneleigh-Burnham 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 Stoneleigh-Burnham go up as well.
An Example of How It Works
Georgia would like to support Stoneleigh-Burnham and provide for her children. Georgia received a windfall amount of income and needs a large income tax deduction to offset the income.
Following her advisor’s recommendation, Georgia funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Georgia’s trust pays $60,000 (6% of the initial fair market value) to Stoneleigh-Burnham each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to Georgia. SHe receives an income tax charitable deduction of $686,160. Assuming the trust earns an average 8% annual rate of return, Georgia receives approximately $1,619,706 at the end of the trust term.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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- Contact Susan Mattei at 413.774.2711 x247 or email@example.com to talk about supporting Stoneleigh-Burnham by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Stoneleigh-Burnham in your plans, please use our legal name and federal tax ID.
Legal Name: Stoneleigh-Burnham School
Address: 574 Bernardston Road, Greenfield, MA 01301
Federal Tax ID Number: 04-2163044