Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at South Texas College of Law Houston and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to South Texas College of Law Houston for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.

There are two ways that charitable lead trusts make payments to STCL Houston:

A charitable lead annuity trust pays a fixed amount each year to STCL Houston and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to STCL Houston 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 STCL Houston go up as well.

An Example of How It Could Work

Father smiling with children George would like to support STCL Houston 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 STCL Houston 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 $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

Contact Office of Planned Giving at 713-646-1878 or giftplanning@stcl.edu to talk about supporting STCL Houston by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor.
If you include STCL Houston in your plans, please use our legal name and federal tax ID.

Legal name: South Texas College of Law Houston
Address: 1303 San Jacinto Street, Houston, Texas 77007-7006
Federal tax ID number: 74-1554976

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.