Planned Giving

Charitable Lead Trust

A charitable lead trust allows you to benefit from tax savings that result from supporting Texas Parks and Wildlife Foundation without giving up assets that you would like your family to receive someday.

There are two ways that charitable lead trusts make payments to TPWF:

A charitable lead annuity trust pays a fixed amount each year to TPWF 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 TPWF go up as well

An Example of How it Works

George would like to support TPWF and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to TPWF each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.

* Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.