Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at the University of Edinburgh USA Development Trust 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 the University of Edinburgh USA Development Trust 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 the University of Edinburgh USA Development Trust:

A charitable lead annuity trust pays a fixed amount each year to the University of Edinburgh USA Development Trust and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to the University of Edinburgh USA Development Trust 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 the University of Edinburgh USA Development Trust go up as well.

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

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An example of how it could work

Father smiling with children George would like to support the University of Edinburgh USA Development Trust and provide for his children. 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 $70,000 (7% of the initial fair market value) to the University of Edinburgh USA Development Trust each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

  1. Contact Morag Murison at +44 (0) 131 650 2240 or legacy-giving@ed.ac.uk to talk about supporting the University of Edinburgh USA Development Trust by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the University of Edinburgh USA Development Trust in your plans, please use our legal name and federal tax ID.

Legal name: The University of Edinburgh USA Development Trust
Address: 45 Rockefeller Plaza, Ste 2000, New York, NY, 10111, USA
Federal tax ID number: 52-1802057

The University of Edinburgh USA Development Trust, Inc, is a registered charity, which supports students, teaching and research at the University of Edinburgh. The Trust is incorporated in the State of Virginia and is recognized by the Internal Revenue Service as a 501(c)3 non-profit organization. Under its charter and in accordance with U.S. tax law, the University of Edinburgh USA Development Trust, Inc may not receive restricted gifts. However, the Board gives every consideration to donors’ requests when allocating gifts to the University of Edinburgh.

Please also note that the University of Edinburgh has its own charitable status. If you are a USA taxpayer, you can designate it as a beneficiary in your will because bequests to overseas charities are normally exempt from US estate tax. Life income gifts and other planned giving vehicles may need to be given to the University of Edinburgh USA Development Trust, Inc, in order to be eligible for favourable tax treatment under IRS rules.

Due to complexity of some gifts, we would encourage you to contact us to discuss your wishes in the first instance. Please note that the acceptance of each gift is decided on an individual basis.

We welcome enquiries from all donors throughout the US and Canada.

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