Substantial gift and estate tax benefits can be realized from establishing a charitable lead trust. If you hope to transfer assets to your heirs with limited taxation, a lead trust might be an option for you. With a lead trust, the donor transfers assets to a trustee, such as Boston College. The trustee makes annual payments to the charity (Boston College) for a specific term of years (typically 10 to 25). When the trust term ends, the principal plus any appreciation is transferred to your beneficiaries, typically, but not limited to, children or grandchildren.

In exchange for this gift, you receive a federal estate tax deduction equal to the estimated value of the annual trust payments to Boston College. Moreover, any appreciation in the assets during the term of the trust is not subject to additional gift or estate tax. As a result, you are often able to pass on to your heirs a larger estate after tax than would otherwise be possible. Ultimately, you are able to pass on appreciated assets to your heirs after a number of years, but pay taxes only on a portion of the assets transferred to the trust.

Lead trusts are fairly complex gifts with many variables to consider. Therefore, it is highly recommended that an attorney and/or financial advisor be consulted when you are considering this gift help your reach your personal and financial goals.

Summary of Benefits:

• Satisfaction in supporting an area of Boston College that is important to you.
• Potential to provide an inheritance to your heirs while saving now and in the future on income, gift, and/or estate taxes.
• Expert trust administration by Boston College, if you so choose. If you prefer to maintain the services of your family's financial advisors, Boston College is happy to work with them to achieve your philanthropic and planning goals.

For more information, please contact the Office of Gift Planning.

The information on this site is not intended as legal, tax, or investment advice. For such advice, please consult an attorney or a tax or investment professional.