Charitable Lead Trust
Provide for Your Loved Ones and Albion College
If you want to benefit from the tax savings that result from supporting Albion College, but don't want to give up the assets that you want your family to receive someday, consider a charitable lead trust. This gift arrangement lets you make a significant gift to Albion College in the form of income payments from a trust for a set number of years. At the end of those years, the remaining assets transfer to your designated beneficiary or beneficiaries.
There are two ways that charitable lead trusts make payments to Albion College:
A charitable lead annuity trust pays a fixed amount each year to Albion College 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 Albion College go up as well.
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
- Contact Steve Oursler, CEP at 517/629-0897 or firstname.lastname@example.org to talk about supporting Albion College by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Albion College in your plans, please use our legal name and federal tax ID.
Legal Name: Albion College
Address: 611 East Porter Street, Albion, MI 49224
Federal Tax ID Number: Please contact us for our federal tax ID number.
An Example of How It Works
George would like to support Albion 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 Albion 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.
Calculate Your Benefits
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