Making a Gift of Income to Charity While Retaining Property in the Family
You may choose a Charitable Lead Trust to provide income to Penn College for a term of years.
You have an income tax deduction in the year of the contribution, equal to the present value of the total annual charitable gifts of income, as determined under IRS tables.
Because only the "remainder" interest, as determined under IRS tables in the year of contribution, is subject to (gift) tax, this type of trust can significantly reduce the estate, gift,and inheritance tax costs for transferring ultimate ownership of income-producing property to your heirs.
The income element and all future appreciation completely escape transfer taxes.
A minimum property value of $250,000 is required to establish a Penn College Charitable Lead Trust.
The Penn College Institutional Advancement Office is not engaged in providing legal or tax advisory services. This information is of a general character only, and is subject to changes in state and federal tax laws, regulations and interpretations. For advice and assistance in specific cases, you should enlist the services of an attorney or other professional tax or financial advisor(s).
The Pennsylvania College of Technology Foundation, Inc. and Pennsylvania College of Technology are non-profit 501(C)(3) tax exempt organizations.