Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting The University of Texas at Dallas without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to UT Dallas:
A charitable lead annuity trust pays a fixed amount each year to UT Dallas 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 UT Dallas go up as well.
An Example of How It Works
George would like to support UT Dallas 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 UT Dallas 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 $686,160. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,619,706 at the end of the trust term.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate. View my guide »
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- Contact Anna LeBlanc, Chartered Advisor in Philanthropy®, CFRE at 972-883-6023 or firstname.lastname@example.org to talk about supporting UT Dallas by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include UT Dallas in your plans, please use our legal name and federal tax ID.
Legal Name: The Board of Regents of The University of Texas System for the benefit of The University of Texas at Dallas
Address: 210 West Seventh St., Austin, TX 78701
Federal Tax ID Number: 75-1305566
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