You can benefit from the tax savings that result from supporting Orange County United Way 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 United Way:
A charitable lead annuity trust pays a fixed amount each year to United Way 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 United Way go up as well.Watch How It Works
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An Example of How It Works
George would like to support United Way 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 United Way 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 $770,960. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,637,530 at the end of the trust term.
*Based on a 2.0% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Mike Olson at 949.263.6127 or MikeO@UnitedWayOC.org to talk about supporting United Way by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include United Way in your plans, please use our legal name and federal tax ID.
Legal Name: Orange County's United Way
Address: 18012 Mitchell South, Irvine, CA 92614
Federal Tax ID Number: 33-0047994