Charitable Lead Trust
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You can benefit from the tax savings that result from supporting Pennington Biomedical Research 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 PBRF:
A charitable lead annuity trust pays a fixed amount each year to PBRF 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 PBRF go up as well.
An Example of How It Works
George would like to support PBRF 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 percent of the initial fair market value) to PBRF 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 $854,311. 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 3.2 percent charitable midterm federal rate.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
- Contact Jill Roshto at 225.763.2511 or Jill.Roshto@pbrf.org to talk about supporting PBRF by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include PBRF in your plans, please use our legal name and federal tax ID.
Legal Name: Pennington Biomedical Research Foundation
Address: 6400 Perkins Road, Baton Rouge, LA 70808
Federal Tax ID Number: 58-1767810