Charitable Lead Trust

Lead Trust Diagram

How it Works

  • You contribute securities or other appreciated assets to a charitable lead trust.
  • The trust makes annual payments to the University of South Carolina or one of its affiliated foundations for a period of time.
  • When the trust terminates, the remaining principal is paid to your heirs.

Benefits

  • Income payments to us for a term of years reduce the ultimate tax cost of transferring an asset to your heirs.
  • The amount and number of years of the payments to the University of South Carolina or one of its affiliated foundations can be set to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
  • All appreciation that takes place in the trust goes tax free to the individuals named in your trust.

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