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Protect Your Assets
You can benefit from the tax savings that result from supporting Ferris State University without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to FSU FDN:
A charitable lead annuity trust pays a fixed amount each year to FSU FDN and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year 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 FSU FDN go up as well.
An Example of How It Works
George would like to support Ferris State University 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 percent of the initial fair market value) to FSU FDN 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 $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
- Contact Bob Murray at (231) 591-2365 or firstname.lastname@example.org to talk about supporting FSU FDN by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include FSU FDN in your plans, please use our legal name and federal tax ID.
Legal Name: The Ferris Foundation
Address: 420 Oak Street, PRK 101, Big Rapids, MI 49307
Federal Tax ID Number: 38-6115813