Charitable Lead Trust

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How It Works

You contribute cash, securities or other property to a trust.

The trust makes fixed annual payments to Oxford University for a specified term of years.

When the trust ends, the remaining principal goes to your heirs.

Benefits

  • You qualify for a gift tax deduction for the present value of the annuity payments to Oxford University.
  • You can adjust the annuity payments and the term of the trust to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
  • All appreciation that takes place in the trust goes tax-free to your heirs.
  • You can use your available estate tax credit ($1.5 million per person in 2004; $2.0 million per person beginning in 2006) to further reduce taxes on transfers to your heirs.
  • You can have the satisfaction of making a significant gift to Oxford University now that reduces the taxes due on transfers to your heirs later.

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For more information

If you are considering a charitable lead trust, email us, complete the personal illustration form, or call us at 212 377 4900 so that we can assist you through every step of the process.