St. Louis University High School

The Charitable Lead Trust generates income for SLUH now, while reducing your tax costs for transferring assets to the next generation. The lead trust holds gift assets for your lifetime or for a term of years, and pays annual income to us. SLUH benefits from the assured income stream from the lead trust, while your family enjoys several tax advantages:

• The gift assets placed in the lead trust are frozen in value for transfer-tax purposes as of the date the trust is formed. When the trust terminates and the assets pass to your family, all intervening appreciation will escape gift and estate tax.
• Our income interest further reduces the taxable value of the trust assets when they pass to your family. This feature makes the lead trust especially useful if you are holding assets likely to appreciate significantly before they are transferred to the next generation.

How It Works

You contribute cash, securities or other property to a trust.
The trust makes fixed annual payments to St. Louis University High for a specified term of years.
When the trust ends, the remaining principal goes to your heirs.

Benefits

• You qualify for a gift tax deduction for the present value of the annuity payments to SLUH.
• You can adjust the annuity payments and the term of the trust to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
• All appreciation that takes place in the trust goes tax-free to your heirs.
• You can use your available estate tax credit ($1.5 million per person in 2004; $2.0 million per person beginning in 2006) to further reduce taxes on transfers to your heirs.
• You can have the satisfaction of making a significant gift to SLUH now that reduces the taxes due on transfers to your heirs later.

This gift is for you if...

• You want to make a significant gift to us while preserving your estate for your family;
• You want to freeze the value of appreciating assets before they are transferred to your heirs;
• Your priority is reducing gift and estate taxes rather than securing an income tax deduction;
• You want to provide a steady source of income that we can use for an ongoing project.

To learn more about charitable lead trusts, E-mail us, complete the Information Request form, or call us at 314.531.0330 so that we can assist you.

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