Providing for Our Children's Future
Joe and Kathy worked for many years building up their nest egg for retirement. While they felt their savings and investments would cover their own needs, they wanted to make sure that their three children were provided for in the future.
Kathy: We wanted to continue making special gifts above our tithe to our local church and CFR. Yet at the same time, I was concerned about sacrificing our children's inheritance.
Joe: Our stock portfolio had appreciated significantly over the years. I wanted to pass these gains on to my family without paying a lot in gift or estate tax.
Their financial advisor told them about a way in which they could achieve their personal and charitable goals through a charitable lead trust. The trust would pay income to the church and CFR for a number of years. Then the full trust value, plus any growth, would go to their children. The plan would allow them to pass on substantial wealth to their family at little or no gift tax at all. It would also reduce the size of their estate in addition to helping the charity further its work.
Kathy: I could see how this plan would be very helpful if the trust was funded with our stock. Each of our children would receive one-third of the trust assets in the future. At the same time, we would continue to make special gifts to our church and CFR each year.
Joe: I also thought the plan was a good one. It would give our children time to learn how to save and invest their future inheritance. So we set-up a charitable lead trust plan that would begin paying our church and CFR income each year. The prospect of helping our children succeed in the future while providing for our favorite charitable causes made us pleased with our decision. Plus knowing our trust assets were secure being invested at CFR.
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