Charitable trusts offer great flexibility to donors wishing to support Lutheran Homes Society while either providing income to themselves or passing assets to family members or others in a tax-wise fashion. Many kinds of charitable trusts exist that allow donors to meet their financial needs and charitable giving interests by designing the size and timing of their income interest and their charitable gift. Four kinds of charitable trusts provide basic ways of giving, while variations of these offer different gifting, income, and taxation outcomes. Annuity, Unitrust, Remainder, and Lead Trust arrangements offer specific ways of accomplishing donor gift intentions.

Gifts that Provide Income to Donors

In addition to Charitable Gift Annuities, Charitable Remainder Annuity Trusts provide a fixed income stream to donors for their lifetimes or fixed term of years, claim a current income tax deduction, and make a future (charitable remainder) gift to LHS.

Charitable Remainder Unitrusts offer the potential to grow the income stream to donors or their designated beneficiaries by receiving a selected percentage of the market value of the trust as valued each year. As the trust principal grows in market value, the income received would also increase. If, however, the trust principal declines in market value, the income received would also decrease. This variable income stream would be provided for a fixed term of years or donor lifetime, again allowing donors a current income tax deduction while making a future (charitable remainder) gift to LHS.

Gifts that Provide Income to LHS

Charitable Lead Annuity Trusts allow donors to make a lead gift to LHS for a fixed period of time or for the life of one or more individuals and provide monies to themselves or family members later. At the end of the measuring term, the charitable lead annuity trust terminates and distributes its remaining assets back to the donors or to one or more specified individuals.

Charitable Lead Unitrusts allow donors to make immediate charitable gifts of variable annual amounts to LHS for a fixed period of time or the life of one or more individuals, and then pass the remainder trust principal to themselves or other family members later.

Please contact LHS Foundation staff 419-861-4965 or KLemmerbrock@LHSOH.org to discuss these charitable gifting options in greater detail.