THE PLANNED GIFT CALCULATOR

(CAUTION: THERE ARE TWO TYPES OF THIS TRUST; PLEASE EXAMINE BOTH)

(1) WHAT IS A NON-GRANTOR CHARITABLE LEAD ANNUITY TRUST?
A non-grantor charitable lead annuity trust is a gift plan defined by federal tax law that allows you to transfer assets to family members at reduced tax cost while making a generous gift to UW-L Foundation.

As a lead annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, UW-L Foundation or a bank trust department).

During the lead annuity trust's term, the trustee invests the trust's assets and provides a fixed dollar amount each year to UW-L Foundation. These payments are used for the charitable purpose you designate and continue until the trust term ends or until the highly unlikely event that the trust distributes all its assets. The trust's term may be for a specific number of years (10-20 years is common), one or more lifetimes, or a combination of the two. The payments are made out of trust income, or trust principal if the trust income is not adequate. If trust income during a given year exceeds the annual charitable payment, the trust pays income tax on the excess.

When the lead annuity trust term ends, the trust distributes all of its accumulated assets to family members or other beneficiaries named by you.

BENEFITS INCLUDE:

1. You will qualify for a federal gift tax deduction.

2. UW-L Foundation will receive fixed annual payments from your trust for a term of years, or for another term you designate.

3. The beneficiaries of your trust (for example, family members) will receive all of the trust's assets when the trust terminates. Any asset growth that occurs within the trust will be distributed to your trust's beneficiaries free of gift or estate tax.

4. Your gift will benefit from expert asset management, provided by the same professionals who manage UW-L Foundation's endowment.

(2) WHAT IS A GRANTOR CHARITABLE LEAD ANNUITY TRUST?
A grantor charitable lead annuity trust is a gift plan defined by federal tax law that allows you to retain ultimate possession of an asset while making a generous gift to UW-L Foundation.

As a grantor lead annuity trust donor, you transfer assets, usually cash or securities, to a trustee of your choice (for example, UW-L Foundation or a bank trust department). During the trust's term, the trustee invests the trust's assets and provides a fixed dollar amount each year to UW-L Foundation. These payments are used for the charitable purpose you designate.

Although the trust's term may be for one or more lifetimes, a specific number of years (usually 10-20) is almost always used. The payments are made out of trust income, or trust principal if the trust income is not adequate. They continue until the trust term ends or until the highly unlikely event that the trust distributes all of its assets.

When the grantor lead trust term ends, its charitable payments cease and the trust returns all of its accumulated assets back to you.

Because you retain ultimate possession of a grantor lead trust's assets, all taxable income earned by the trust during its term, including income distributed to UW-L Foundation, is taxable to you. For this reason, grantor lead trusts sometimes are invested to earn tax-free income.

BENEFITS INCLUDE:

1. You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 20% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 30% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 20% or 30% limitation.

2. UW-L Foundation will receive fixed annual payments from your trust for a term of years, or for another term you designate.

3. You will receive all of the trust's assets when the trust terminates, including any appreciation that has occurred during the trust term.

4. Your gift will benefit from expert asset management, provided by the same professionals who manage UW-L Foundation's endowment.

To perform calculations for the above option return to The Planned Gift Calculator and then click on "CALCULATIONS".