Protect Your Assets
You can benefit from the tax savings that result from supporting Lehigh University 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 Lehigh University:
A charitable lead annuity trust pays a fixed amount each year to Lehigh University 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 Lehigh University go up as well.
An Example of How It Works
George would like to support Lehigh University 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 Lehigh University 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.
Fill out a brief form to see which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.Download and View Your Guide
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. Fill out a brief form to download your FREE copy of the guide Plan for Retirement With a Deferred Gift Annuity.Download and View Your Guide
Calculate Your Benefits
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Personal Estate Planning Kit
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Fund Your Donation With:
- Contact the Office of Planned Giving at (610) 758-4749 or firstname.lastname@example.org to talk about supporting Lehigh University by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Lehigh University in your plans, please use our legal name and federal tax ID.
Legal Name: Lehigh University
Address: 27 Memorial Drive West, Bethlehem, PA 18015-3086
Federal Tax ID Number: 24-0795445
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