Charitable Lead Trust
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Protect Your Assets
You can benefit from the tax savings that result from supporting Occidental College without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to Oxy:
A charitable lead annuity trust pays a fixed amount each year to Oxy 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 Oxy go up as well.
Gifts That Pay
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.
An Example of How It Works
George would like to support Oxy and provide for his children. Following his advisor's recommendation, George funds a charitable lead annuity trust with assets valued at $2,500,000.
George's trust pays $175,000 (7 percent of the initial fair market value) to Oxy each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.
His gift tax deduction is $2,182,775* against the $2,500,000 of assets. Therefore, only the difference ($317,225) 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 $2,500,000 outright to his children, it would have been a taxable gift.
*Assuming annual payments and a 2.4 percent charitable midterm federal rate.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
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- Contact Office of Gift Planning at (323) 259-2644 or email@example.com to talk about supporting Oxy by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Oxy in your plans, please use our legal name and federal tax ID.
Legal Name: Occidental College
Address: 1600 Campus Road, M-36
Los Angeles, CA 90041
Federal Tax ID Number: 95-1667177