Mrs. Kiley recognized the schools need for scholarship dollars; she spoke at length to her sons about this need. When Edith passed away in June 1994 the school was notified that Mrs. Kiley had set up a Charitable Lead Trust with 14 interests. Middlesex received two of the fourteen interests in the trust giving us 6% of the fair market value of the trust annually, accounting for approximately $17,500 annually. This was used to fund the Edith Kiley Scholarship Fund. After 15 years and approximately $262,500, the trust passe s to the grandchildren at a reduced tax cost. This is a wonderful estate planning vehicle which allows for a larger gift to the grandchildren as well as a wonderful gift to Middlesex. This plan allowed Edith Kiley to do much more through her estate than she ever thought possible in her lifetime. The Scholarship has already made a difference to many students at Middlesex both to those that have personally received funds as well as those whose lives have been enriched.
Lead Trust:
How it works:
- Income stream goes to charity for a term of years (as opposed to a Charitable Remainder Trust which pays to a donor or family member then passes to Charity).
- Remainder goes to the donor or another person or persons.
Why would someone set up a Charitable Lead Trust?
- Accelerates an income tax charitable deduction for future charitable gifts
- to pass property to heirs at reduced transfer cost
- to make charitable gifts beyond the federal income tax charitable contribution ceiling.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.