A charitable lead trust allows you to make a future transfer of assets to your heirs at a substantially reduced gift and estate tax cost, while providing an income stream to NewYork-Presbyterian Hospital for a lifetime or a term of years.
During your lifetime or a specified number of years, a fixed or variable income is paid to NewYork-Presbyterian, depending on the type of trust you create. You may designate your desired area of support within the Hospital. At the end of the trust term, the assets are passed to your heirs or to a trust for their benefit.
How You Can Save Taxes
You may receive a charitable gift tax deduction for the present value of the annual income payments to the Hospital during the trust term. This deduction may significantly reduce your gift and estate tax liability on the transfer to your heirs.
Furthermore, any appreciation of the trust assets over the trust term is not subject to gift or estate tax.
How You Can Establish a Charitable Lead Trust
- You transfer cash, securities, or other property to a trust. You receive a gift tax deduction.
- During its term, the trust pays a fixed amount each year to NYP.
- When the trust ends, its remaining principal passes to your family or other heirs you name. Trust growth passes to them tax-free.
You can establish a charitable lead trust with publicly traded securities, closely held stock, income-producing real estate, partnership interests or a combination of the above. To receive the most favorable capital gains tax treatment, it is recommended that you fund the trust with cash or not highly appreciated assets. Typically, a lead trust is most effective if you fund the trust with assets valued at $500,000 or more.
Note: As you consider any charitable gift plan, please consult with your tax or financial advisor to determine the tax/financial implications for you and your family. NewYork-Presbyterian does not provide legal or tax advice. This communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties.