BHP | Planned Giving

Charitable Lead Trusts

Do you want to benefit from the tax savings that result from supporting UT Austin, 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.

HOW IT WORKS

You give assets to a trust that pays the Business Honors Program an income for a number of years, which you choose. The longer the length of time, the better the gift tax savings for you. When the term is up, the remaining trust assets go to your family or other beneficiaries you select.

Charitable Lead Trusts

This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal tax cost. This type of charitable lead trust (also called a nongrantor, or family lead, trust) is especially appealing to UT Austin supporters who are financially comfortable enough that they can forgo investment income on some assets.

BENEFITS

  • You support an organization you love while also making sure your family is taken care of after your lifetime.
  • The gift qualifies for gift or estate tax savings based on the current value of the income paid to the Business Honors Program over the trust term.

SUMMARY

  • A lead trust is an irrevocable gift to the University of Texas.
  • You transfer assets into the trust for use by the University for either a term of years or for your lifetime, as you decide.
  • While the trust is in effect, the University invests the funds and makes trust payments to the Business Honors Program.
  • At the end of the trust term, the assets are returned either to you or to your heirs, depending on your financial goals.

MAKE A GIFT

For information on Charitable Lead Trusts, contact Dianne Bangle in the McCombs School at (512) 475-8177.

Page last updated: 6/23/2014