An Example of How It WorksRead More
An Example of How It Works
George would like to support Concordia College 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% of the initial fair market value) to Concordia College 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 $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Trina Hall at 218.299.3445 or firstname.lastname@example.org to talk about supporting Concordia College by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Concordia College in your plans, please use our legal name and federal tax ID.
Legal Name: Concordia College
Address: 901 8th St. S., Moorhead, MN 56562
Federal Tax ID Number: 41-0693977