A Charitable Lead Trust (CLT) is a type of gift arrangement which allows you to direct gifts to the Georgia Southern Athletic Foundation for a specified period of time and, in turn, receive either a charitable deduction now for gifts made in subsequent years or a reduction in gift or estate taxes on assets you wish to pass to heirs. CLTs are simple in concept but are complex gift- and estate-planning devices because of the many technical drafting requirements of the IRS. We recommend you consult an attorney who specializes in trusts and estates and has experience with CLTs.
Most donors who use CLTs to accomplish their philanthropic and estate-planning objectives opt to create a qualified CLT. Many requirements must be met for a CLT to be qualified, but here are a few major considerations:
- The payments (gifts) to Georgia Southern must be an annuity interest (fixed-dollar amount annually) or unitrust interest (fixed percentage of the fair-market value of the trust assets determined annually). There are no minimum or maximum payout rates.
- The term of the trust (the number of years in which gifts will be made) must be measured by the life or lives of a person or persons living when the trust is created or a specified number of years.
- The charitable beneficiary must be an organization described in the appropriate sections of the IRS Code. The Georgia Southern Athletic Foundation is a qualified charitable organization.
If you are considering the creation of a CLT, please contact your tax advisor or attorney. As you are in the process of setting up your CLT, please notify Allie Ware at aware@georgiasouthern.edu so we can help however is appropriate.