Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at Binghamton University and also ensure ownership of the asset is transferred to your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to Binghamton University Foundation for a period of time, not more than 20 years. When the term of the trust ends, the remaining assets pass as you designated.

There are two ways that charitable lead trusts make payments to the Foundation:

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

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

An Example of How It Works

Binghamton campus George would like to support the University and receive tax benefits. George received a windfall amount of income and needs a large income tax deduction to offset the income, but does not want to lose the opportunity for his sons to receive the asset. Following his advisor’s recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. He will receive a federal income tax charitable deduction of $614,450 and the peace of mind knowing the trust’s assets will end up with his family.

George’s trust pays $60,000 (6% of the initial fair market value) to the Foundation each year for 15 years, which will total $900,000. After the term of the trust (15 years), the balance in the trust is transferred to George’s two sons (or other beneficiaries named by him in the trust). Assuming the trust earns an average 8% annual rate of return, George’s sons receive approximately $1,579,621 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 Gift Planning at 1-888-787-0540 (toll-free) or 607-777-6756 (local) or giftplan@binghamton.edu for additional information on charitable lead trusts or to learn more about your personal benefits if you establish one.
Seek the advice of your financial or legal advisor.
If you include the Foundation in your plans, please use our legal name and federal tax ID (below).
After you have signed your trust, please be sure to inform us so that we may thank and recognize you in a way meaningful to you.

Legal name: The Foundation of the State University of New York at Binghamton, Inc.
Address: PO Box 6005, Binghamton, NY 13902-6005
Federal tax ID number: 16-6053710

Discover More

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