There is a way to make a charitable gift using funds that would eventually be returned to you or your loved ones. A charitable lead trust can provide significant charitable and tax benefits. This form of trust can be a means to transfer substantial amounts of wealth to your family while reducing or eliminating gift and estate tax. During the term of the trust, income is paid to the University of Maine Foundation to fund an endowment or support the program of your choice. When the trust terminates, the assets revert to the donor or another beneficiary but the appreciation is not subject to further gift or estate tax.
A charitable lead trust is a valuable gift and estate-planning tool. If you want to reduce your current income but wish to retain assets for your family, provide much needed support for the University of Maine, and reduce your gift and estate tax exposure, call your tax advisor to discuss the benefits of establishing a charitable lead trust.
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