Provide for Your Loved Ones and the AAOF

Charitable Lead Trusts

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Do you want to benefit from the tax savings that result from supporting the AAOF, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.

There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to the AAOF 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 the AAOF go up as well.

Check Out This Potential Scenario

Man smiling George would like to support the AAOF and provide for his children. Following his advisor's recommendation, George funds a charitable lead annuity trust with assets valued at $2,500,000.

George's trust pays $175,000 (7 percent of the initial fair market value) to the AAOF each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.

His gift tax deduction is $2,182,775* against the $2,500,000 of assets. Therefore, only the difference ($317,225) is subject to gift tax, which is offset against his lifetime gift tax exclusion. After that, the remaining trust assets and all of their growth will pass to his family at zero additional cost in gift and estate taxes. Had George given the $2,500,000 outright to his children, it would have been a taxable gift.

*Assuming annual payments and a 2.4 percent charitable midterm federal rate.

Learn How to Fund It

You can use the following assets to fund a charitable lead trust:

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Gift Illustrator

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Next Steps

  1. Contact Maureen Dimont at 321-319-4870 and 321-319-4871 (direct) or MaureenD@aaoptom.org to talk about supporting the AAOF by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the AAOF in your plans, please use our legal name and federal tax ID.

Legal Name: American Academy of Optometry Foundation
Address: 2909 Fairgreen Street, Orlando, FL 32803
Federal Tax ID Number: Please contact us for our federal tax ID number.

Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From 2 Win-Win Ways to Donate.View My Free Brochure
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