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A charitable lead trust works like a charitable annuity with two major exceptions. With a charitable lead trust, assets are transferred to a trust for the Bleed Purple Foundation's benefit. Instead of the donor being paid a percentage of the trust's value each year over a fixed term, or for the life of the donor, the Bleed Purple Foundation receives the payments generated by the trust. At the conclusion of the trust term, the funds are returned to the donor or are passed on to the donor's beneficiaries. In a sense, the donor is lending funds to the Bleed Purple Foundation to generate investment income for its programs.
Charitable lead trusts are perfect for the donor who wishes to benefit the Foundation but also wants to pass assets on to children or other family members. By making this "loan" to the Bleed Purple Foundation, you can significantly reduce your estate and gift taxes on transfers of wealth to your children or grandchildren.
For more information contact Scott Chesrown via phone at 303-947-0661 or email schesrown@bleedpurple.org.
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