 Charitable Lead Trusts  |
Charitable Lead Trusts
Fund Development Office
The charitable lead trust allows you to make a future transfer of assets to your heirs at a reduced gift and estate tax cost, while continuing to support Sikh Dharma during your lifetime. During a specified number of years, annuity or a fixed percentage of the trust assets is paid to Sikh Dharma. At the end of the trust term, the assets are passed to the beneficiaries you name.
The short- and long-term benefits for your estate can be significant. First, you can receive a charitable gift tax deduction for the present value of the annual trust payments to Sikh Dharma. This deduction can be used to reduce your gift and estate tax liability on substantial transfers to children or grandchildren.
Although you will not have any income tax deduction, a second advantage is that the income earned by the trust is excluded from your gross income and is, therefore, not taxable to you. In effect, this produces a reduction of your taxes over the trust term.
A third attractive aspect of the lead trust is that any appreciation in the assets during the term of the trust is not subject to additional gift or estate taxation. As a result, you may be able to pass on to your heirs a larger estate after taxes than would otherwise be possible. A third attractive aspect of the lead trust is that any appreciation in the assets during the term of the trust is not subject to additional gift or estate taxation. As a result, you may be able to pass on to your heirs a larger estate after taxes than would otherwise be possible.
The assets of the trust can be invested and managed by Sikh Dharma (at no charge) or by another trustee of your choice. A charitable lead trust can be established with publicly traded securities, closely held stock, income-producing real estate, partnership interests or a combination of the above. A lead trust can be established during your lifetime, as a testamentary trust under your will, or through a pour over from your estate to a "dry" trust established during your lifetime.
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Parmatma Singh and Guru Daya Kaur Khalsa
We would like to honor Parmatma Singh and Guru Daya Kaur Khalsa, Espanola, for supporting the legacy of Sikh Dharma. They have used the vehicle of a Family Limited Partnership as a mode for gifting to Sikh Dharma. They have made a bequest of more than a quarter of a million dollars to be eventually gifted to a trust for the purposes of education. God bless them for their foresight.
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The staff of the Fund Development Office would be pleased to consult with you about the various gift and fund raising alternatives for Sikh Dharma and 3HO.
May Guru bless each and everyone of you for your "keep up", selfless service and tax deductible contributions in January; in spite of earthquakes and severe winter storms.