In a charitable lead trust, a donor transfers property to the lead trust, which pays a percentage of the value of the trust assets, usually for a term of years, to the charity. At the end of the trust term, the remaining assets in the trust and any growth it has realized are passed to donor's heirs. Although there is no income tax deduction when the donor creates a charitable lead trust, his/her gift or estate tax is greatly discounted and any growth is passed to his/her heirs gift and estate tax free.
In a charitable lead unitrust, a donor irrevocably transfers cash, closely held securities or other valuable property to a trustee who, during the unitrusts term, invests the unitrust's assets. Each year, the trustee distributes a fixed percentage of the unitrust's net asset value, as calculated annually, to a named charity. These payments are made out of trust income (or trust principal if the trust income is not adequate) and are tax deductible as a charitable contribution for the year in which they are made. If, however, trust income exceeds the charitable payment for a given year, the trust pays income tax on the excess.
When the lead unitrust term ends, the unitrust distributes the remainder of its accumulated assets to a non-charitable remainderman, usually family members or other beneficiaries named by the donor. That amount is subject to federal gift tax based on the current fair market value of the gift at the time the trust is established. Gift tax is paid on the remainder interest as calculated from the current fair market value of the asset at the time the trust is established; generally this amount is much less than the estate tax would be on the asset as calculated at the time it is inherited.
Fairfax Virginia Charitable Lead Inter Vivos Unit rust is a popular charitable giving vehicle often utilized by individuals and families who want to support causes they care about while also receiving tax benefits. This type of trust combines elements of charitable lead trusts and inter vivos trusts, offering a flexible and effective way to make a long-lasting impact on charitable organizations in the Fairfax, Virginia area. A charitable lead trust, as the name suggests, involves making regular financial contributions to a charitable organization for a specified period. These contributions can be in the form of cash, stocks, real estate, or other assets. In the case of the Fairfax Virginia Charitable Lead Inter Vivos Unit rust, these contributions are made to charitable organizations located in Fairfax, Virginia. This trust arrangement offers donors the opportunity to support their favorite causes within the Fairfax community by providing regular income to designated charities during the trust's term. This income can be a percentage of the trust's assets or a fixed amount determined at the establishment of the trust. The income is distributed annually or at regular intervals, as outlined in the trust agreement. By including the term "inter vivos" in the trust's name, it indicates that this charitable trust is established during the donor's lifetime. Unlike testamentary trusts, which are established through a will, inter vivos trusts allow donors to see their philanthropic efforts in action and engage with the charitable organizations they support. Notable variations of the Fairfax Virginia Charitable Lead Inter Vivos Unit rust include: 1. Standard Fairfax Virginia Charitable Lead Inter Vivos Unit rust: This trust provides a consistent income stream to charitable organizations in Fairfax, Virginia throughout the specified term. It ensures a steady flow of resources to support charitable programs and initiatives. 2. Charlottesville Community Fairfax Virginia Charitable Lead Inter Vivos Unit rust: This specialized version of the trust focuses on supporting charitable organizations in the Charlottesville community, which can include educational institutions, healthcare organizations, social services, and other community-based initiatives. 3. Religious Institutions Fairfax Virginia Charitable Lead Inter Vivos Unit rust: This trust variant is designed to provide ongoing financial support to religious organizations in Fairfax, Virginia. It aims to ensure the viability and growth of these institutions and to support their mission and outreach efforts. Overall, the Fairfax Virginia Charitable Lead Inter Vivos Unit rust offers philanthropic individuals and families in Fairfax the opportunity to make a lasting impact on the community while taking advantage of tax benefits. It provides a flexible giving solution that can be tailored to meet individual goals and support various causes, ranging from education and healthcare to arts and culture within the Fairfax, Virginia region.Fairfax Virginia Charitable Lead Inter Vivos Unit rust is a popular charitable giving vehicle often utilized by individuals and families who want to support causes they care about while also receiving tax benefits. This type of trust combines elements of charitable lead trusts and inter vivos trusts, offering a flexible and effective way to make a long-lasting impact on charitable organizations in the Fairfax, Virginia area. A charitable lead trust, as the name suggests, involves making regular financial contributions to a charitable organization for a specified period. These contributions can be in the form of cash, stocks, real estate, or other assets. In the case of the Fairfax Virginia Charitable Lead Inter Vivos Unit rust, these contributions are made to charitable organizations located in Fairfax, Virginia. This trust arrangement offers donors the opportunity to support their favorite causes within the Fairfax community by providing regular income to designated charities during the trust's term. This income can be a percentage of the trust's assets or a fixed amount determined at the establishment of the trust. The income is distributed annually or at regular intervals, as outlined in the trust agreement. By including the term "inter vivos" in the trust's name, it indicates that this charitable trust is established during the donor's lifetime. Unlike testamentary trusts, which are established through a will, inter vivos trusts allow donors to see their philanthropic efforts in action and engage with the charitable organizations they support. Notable variations of the Fairfax Virginia Charitable Lead Inter Vivos Unit rust include: 1. Standard Fairfax Virginia Charitable Lead Inter Vivos Unit rust: This trust provides a consistent income stream to charitable organizations in Fairfax, Virginia throughout the specified term. It ensures a steady flow of resources to support charitable programs and initiatives. 2. Charlottesville Community Fairfax Virginia Charitable Lead Inter Vivos Unit rust: This specialized version of the trust focuses on supporting charitable organizations in the Charlottesville community, which can include educational institutions, healthcare organizations, social services, and other community-based initiatives. 3. Religious Institutions Fairfax Virginia Charitable Lead Inter Vivos Unit rust: This trust variant is designed to provide ongoing financial support to religious organizations in Fairfax, Virginia. It aims to ensure the viability and growth of these institutions and to support their mission and outreach efforts. Overall, the Fairfax Virginia Charitable Lead Inter Vivos Unit rust offers philanthropic individuals and families in Fairfax the opportunity to make a lasting impact on the community while taking advantage of tax benefits. It provides a flexible giving solution that can be tailored to meet individual goals and support various causes, ranging from education and healthcare to arts and culture within the Fairfax, Virginia region.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
