Charitable Lead Trusts
Charitable lead trusts are most appealing to wealthy donors who want to pass appreciated assets to their heirs at a reduced gift or estate tax cost. Charitable lead trusts allow Howard to receive income from the donor’s assets for a specified time, after which time the asset is returned to the donor or to the donor’s heirs who do not have to pay any additional taxes.
If your children or grandchildren will be the recipients of the trust assets, you may pay a gift tax on the asset when it is placed into the trust, but the gift tax will be reduced by the charitable value of the trust income paid to Howard University School of Law. Once the asset is placed into the trust, it can grow tax-free.
Assets appropriate for a charitable lead trust are bonds, listed securities, closely held stock and income-producing real estate.
For more information on charitable lead trusts, please contact the School of Law Office of Development & Alumni Relations at (202) 806-8000. You may also contact the Office of Planned Giving toll free at (877) 860-GIFT (877-860-4438) or (202) 238-2340.
updated: September 25, 2013