There are marvelous benefits to a charitable lead trust. They are:

• If you earn a high income, a grantor charitable lead trust can provide a significant up-front charitable income tax deduction.
• If you wish to pass on highly valued assets to children or grandchildren, a non-grantor charitable lead trust can provide significant gift tax reductions.
• There are no trust management fees charged to you for this invested gift if Temple University serves as trustee.
• You, your estate or your heirs will receive the trust principal at the end of the trust term.
• Temple will receive income payments from the trust in quarterly installments during your lifetime or for a predetermined term of years. This income can be dedicated to any approved purpose you choose to support within the University.

When you establish a charitable lead trust naming Temple University as income beneficiary, you can:

• create an endowment in your name or in honor/memory of someone important to you.
• direct the endowment to a particular School or College.

You and Temple University may enter into a formal endowment agreement to ensure that your gift will be used to accomplish your wishes.

With your permission, Temple will recognize your gift through membership in the Acres of Diamonds Circle, a distinctive group of fellow alumni/ae, faculty and friends who have made a planned gift to the University.

Among other assets, Mr. and Mrs. M own a $500,000 stock portfolio with a cost basis of $100,000. They place this portfolio in a non-grantor lead annuity trust that pays 8% of its value each year to Temple for 10 years. Mr. and Mrs. M will qualify for a federal gift tax deduction of $275,820*. Temple University will receive a fixed annual income of $40,000 for ten years.

At the end of the ten-year trust term, the M's grandchildren will receive all of the trust's assets as beneficiaries of their trust. Any new appreciation in value of the trust assets will be distributed to the beneficiaries free of any additional federal gift taxes. It is recommended that a qualified corporate trustee be selected for your charitable lead trust. Please discuss the selection of a trustee with the University.

All Lead Trusts will be monitored by Temple's Director of Planned Giving, Jerry Rohrbach. He may be reached at 215-204-5741 or 800-822-6957 or e-mail jerry.rohrbach@temple.edu.

*Gift tax deductions based on 2/2000 IRS Discount rate, updated monthly.

The information provided on these sheets is based on current tax laws as of 2/2000. Any new changes in the tax code or any related tax laws may not be reflected here.

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• The Charitable Gift Annuity
• Establishing an Endowment at Temple
• Pooled Income Fund
• The Charitable Remainder Trust
• The Deferred Payment Charitable Gift Annuity
• The Charitable Lead Trust
• Bequests
• Life Insurance
• Retirement Plan
• How the Repeal of Estate Tax Will Affect You
• Request more information