Office of Estate & Gift Planning
Charitable Lead Trust
You can benefit from the tax savings that result from supporting the University of Florida 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 UF:
A charitable lead annuity trust pays a fixed amount each year to UF 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 UF go up as well.
An Example of How It Works
George would like to support UF 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 UF 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.
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- Contact the Office of Estate & Gift Planning at 352-392-5512, toll free at 866-317-4143 or firstname.lastname@example.org to talk about supporting UF by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include UF in your plans, please use our legal name and federal tax ID.
Legal Name: The University of Florida Foundation, Inc.
Address: 1938 West University Avenue, Gainesville, FL 32603
Federal Tax ID Number: 59-0974739
The University of Florida Foundation is not affiliated with, and does not provide, endorsements for professional advisors. Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Charitable Gift Annuities may not be available in all states.