Charitable Remainder Trust
A Charitable Remainder Trust provides income back to you or other beneficiaries for a period of years or for your lifetime. You transfer cash, securities or other appreciated property into an annuity trust. The trust makes fixed or variable annual payments to you or to the beneficiaries you name depending upon your wishes. When the trust terminates, the principal passes to the charities that you name such as Landis Homes.
The benefits to you as the donor are:
- You receive an immediate income tax deduction for a portion of your contribution to the annuity trust.
- You pay no upfront capital gains tax on any appreciated assets you donate.
- You or your designated income beneficiaries receive stable, predictable income for life or a term of years.
- You have the satisfaction of making a significant gift that benefits you now and Landis Homes later.
Charitable Lead Trust
A Charitable Lead Trust is an estate planning tool that allows you to transfer the income from an asset to charity while having the asset itself revert to your family after a period of years. This can be an excellent planning tool for those individuals and couples that are most concerned about the effects of estate taxes upon their heirs.
This is how it works: You contribute securities or other appreciated property to a charitable lead trust. The trust makes fixed annual payments to Landis Homes for a period of time. When the trust terminates, the remaining principal is paid to your heirs.
The benefits for you are:
- The present value of the income payments to Landis Homes reduces your gift estate tax.
- All appreciation that takes place in the trust goes tax-free to your heirs.
- The amount and term of the payments to Landis Homes can be set so as to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
- You have the satisfaction of making a significant gift to Landis Homes now that reduces the taxes due on transfer to your heirs later.