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Charitable Lead Trust

Make a substantial gift to Walnut Hill School for the Arts in the form of fixed annual payments and pass assets to your family or other heirs at reduced gift and estate tax cost.

A charitable lead annuity trust may be right for you if:

  • You have substantial assets that you do not need currently for your own financial security.
  • You want to provide for your family or other heirs.
  • You want to save gift taxes, estate taxes, and probate costs.
  • You want your gift to make a difference at Walnut Hill starting immediately.
  • You could consider a gift of $500,000 or more to benefit Walnut Hill and your heirs.

How it Works

  1. You transfer cash, securities, or other property to a trust. You receive a gift tax deduction.
  2. During its term, the trust pays a fixed amount each year to Walnut Hill.
  3. When the trust ends, its remaining principal passes to your family or other heirs you name.

How Your Gift Helps

Your gifts to Walnut Hill School for the Arts help to educate talented, accomplished, and intellectually engaged young artists from all over the world. It will provide Walnut Hill with the resources to . . .

  • develop new arts programming, enhance our facilities, and recruit talented and dedicated faculty;
  • promote our core values of community, creativity, excellence, growth, and respect;
  • invest in today’s Walnut Hill students, and those of future generations to come.

Charitable Lead Trust Details

Example

Virginia Reed spent her career building a successful manufacturing business, which she sold a few years ago for $10,000,000. She and her husband, David, have three children who are in their 30s. Stanley has been reviewing her estate plan with an eye toward adding a major gift to Walnut Hill. Funding a charitable lead annuity trust offers an excellent way for Stanley to provide generous support to Walnut Hill and pass assets to her three children. Stanley chooses to create a $2,000,000 lead annuity trust that will pay $130,000 to Walnut Hill each year for 20 years.

Benefits

  • The Reeds’ three children will split approximately $2,409,955* when the trust ends.
  • The Reeds will earn a gift tax charitable deduction of $1,566,520**.
  • The assets used to fund the trust will not be taxable in their estate.
  • Walnut Hill will receive $2,600,000 from the trust over 20 years.

* Assumes the trust assets earn a 7% annual net return.
** The Reeds’ estate or gift tax charitable deduction may vary depending on the timing of their gift.