Charitable Lead Trusts

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Do you want to benefit from the tax savings that result from supporting the Aquarium, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.

There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to the Aquarium 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 the Aquarium go up as well.

The mission of the nonprofit the Monterey Bay Aquarium is to inspire conservation of the oceans.

Check Out This Potential Scenario

Man smilingGeorge would like to support the Aquarium and provide for his children. Following his advisor's recommendation, George funds a charitable lead annuity trust with assets valued at $800,000. George's trust pays $56,000 (7 percent of the initial fair market value) to the Aquarium each year for 15 years, which will total $840,000. After that, the balance in the trust goes to his children. His gift tax deduction is $698,488* against the $800,000 of assets. Therefore only the difference ($101,512) is subject to gift tax, which is offset against his lifetime gift tax exclusion. After that, the remaining trust assets and all of their growth will pass to his family at zero additional cost in gift and estate taxes. Had George given the $800,000 outright to his children, it would have been a taxable gift.

*Assuming annual payments and a 2.4 percent charitable midterm federal rate.

Learn How to Fund It

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

Calculate Your Benefits

Gift Illustrator

Submit a few details and see how a charitable lead trust can benefit you.

Next Steps

  1. Contact Mary Mullen at 831-648-4913 or lastinglegacy@mbayaq.org to talk about supporting the Aquarium by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the Aquarium in your plans, please use our legal name and Federal Tax ID.

Legal Name: Monterey Bay Aquarium
Address: 886 Cannery Row, Monterey, CA 93940
Federal Tax ID Number: 94-2487469

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