Charitable Lead Trust
The charitable lead trust is an excellent giving opportunity, which enables you to make a gift to Hellenic College and Holy Cross Greek Orthodox School of Theology and to transfer assets to your heirs, in the future, at a reduced gift tax cost. As a lead trust donor, you irrevocably transfer assets, such as cash, securities or other property to a charitable lead trust for the benefit of Hellenic College and Holy Cross Greek Orthodox School of Theology. The trust is set up for a specific term of years (usually 10 - 20). During the trust's term, you designate Hellenic College, Inc. as the income beneficiary. Later, when the trust term ends, the trust property reverts to your heirs, either outright or in trust. While no income tax deduction is available for the lead interest passing to the School, a gift and estate tax charitable deduction is available.
- You will qualify for a federal gift tax deduction. Your deduction may vary modestly depending on the timing of your gift.
- Hellenic College and Holy Cross will receive payments in quarterly installments each year. Payments will vary with the value of the unitrust. With the annuity trust, the payments are fixed. The beneficiaries of your trust (for example, family members) will receive all of the trust's assets when the trust terminates.
- Any asset growth that occurs within the trust will be distributed to your trust's beneficiaries free of gift or estate tax.
- Although complex, a lead trust can, in some situations, provide a tax-efficient device for making a charitable gift in the context of your overall estate plan.
This giving program is particularly attractive to individuals who desire to transfer significant assets to heirs and are interested in reducing estate taxes. It is desirable to use assets that are rapidly appreciating, as all of the future growth will avoid estate taxes. In addition, assets transferred to heirs using the charitable lead trust incur much lower tax costs when compared to the same assets transferred through your estate. In drafting a lead trust, it is necessary to consider your overall estate plan and to discuss it with your legal and financial advisors. Calculations can be furnished upon request.
As stated previously, the material in this entire section ("Giving Opportunities") of our website is designed to furnish our alumni and friends with general information. It is not intended as legal or financial advice. When considering a charitable gift, be sure to consult your attorney, professional adviser or accountant to ensure that it meets your individual circumstances. The Office of Institutional Advancement will be happy to assist you and your advisers in developing an approach that will best fit your needs and desires. If you would like further information concerning giving opportunities, please contact the Office of Institutional Advancement, Hellenic College and Holy Cross Greek Orthodox School of Theology, 50 Goddard Avenue, Brookline, MA 02445, (617) 731-3500.