If you want to make a gift to Penn State now while reducing the cost of transferring assets to your heirs, a charitable lead trust is an attractive giving option. First, you establish a charitable lead trust with assets valued at $500,000 or more and choose the term of the trust. The trust makes regular payments to Penn State until the term ends, when the remaining assets are transferred to your beneficiaries. A charitable lead trust decreases the taxes your beneficiaries would normally pay when transferring the assets to them.
Benefits of establishing a charitable lead trust include:
- Reducing your gift and estate taxes
- Reducing or eliminating transfer taxes when passing the trust assets to your heirs, depending on how your charitable lead trust was structured
- Providing Penn State with resources needed for immediate educational needs
To learn more about how you can create a charitable lead trust, download our Charitable Lead Trust fact sheet and other publications.
To read a testimonial by one couple who made a gift using a Charitable Lead Trust (CLT), click on the following links:
Penn State’s Office of Gift Planning will confidentially answer your questions about giving and work closely with your legal, tax, and other advisers to come up with an integrated plan that meets each of your personal goals. Please contact us anytime or click here to learn more.