Charitable Lead Trusts
Protect your assets for the future and remain Semper Fi
You can benefit from the tax savings that result from supporting the Marine Corps Scholarship Foundation 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 the the Scholarship Foundation:
A charitable lead annuity trust pays a fixed amount each year to the the Scholarship Foundation 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 the the Scholarship Foundation go up as well.
George would like to support the Marine Corps Scholarship Foundation and provide for his children, as well as the children of his fellow Marine and Navy Corpsman. 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 percent of the initial fair market value) to the Scholarship Foundation 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 $873,110. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*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.
- Contact Lindsay Cameron at 571.386.2643 or email@example.com to talk about supporting the Scholarship Foundation by setting up a charitable lead trust.
- Seek the advice of your financial or legal adviser.
- If you include the Scholarship Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Marine Corps Scholarship Foundation Inc.
Address: 909 N. Washington Street, Suite 400, Alexandria, VA 22314
Federal Tax ID Number: 22-1905062
Here to Help
Assistant Director, Gift Planning
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