Charitable Lead Trusts

Provide for Cornell College and Your Loved Ones

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Charitable lead trusts are gift vehicles that allow donors to support Cornell during their lifetime, pass their assets to their loved ones, and realize potential gift and estate tax savings through their gift.

There are two ways charitable lead trusts make payments:

A charitable lead annuity trust pays a fixed amount each year to Cornell 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 Cornell go up as well.

Here is a Potential Scenario

Man smilingGeorge would like to support Cornell and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to Cornell each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

Learn How to Fund It

You can use the following assets to fund a charitable lead trust:

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Gift Illustrator

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Next Steps

  1. Contact Kristi (Webster) Columbus '96 at 319.895.4315 | 877.683.7666 or giving@cornellcollege.edu to talk about supporting Cornell by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Cornell in your plans, please use our legal name and federal tax ID.

Legal Name: Cornell College
Address: 600 First Street SW, Mount Vernon, IA 52314
Federal Tax ID Number: 42-0680335

Discover which type of charitable trust best fits your estate plan with the complimentary guide Trusts: Choose From 2 Win-Win Ways to Donate.

View My Complimentary Brochure