Charitable Lead Trust

The Charitable Lead Trust (CLT) is a very effective estate and charitable planning vehicle that allows you to transfer property to family members with reduced or zero gift or estate taxes. You can donate cash, stock, or real estate to a CLT, and a portion of the income from the trust asset is paid to Pepperdine throughout your lifetime or a fixed term of years, after which the trust assets are returned to family members.

Summary

An annual income is paid to Pepperdine
Remainder of trust assets go to family members
Gift or estate tax deduction reduces or eliminates transfer tax
Trust can start during your life or upon your death
Receive relief from investment and management responsibilities
Create a permanent legacy for Pepperdine University, its faculty, and students

Tax Benefits

Gift or estate tax deduction reduces or eliminates transfer tax
Allows you to transfer significant assets to family with little or no gift or estate tax
Income-producing assets are ideal to place in a CLT, such as leased commercial real estate

Income to Pepperdine

Pepperdine receives annual income from CLT to benefit students or programs
Assets are held by CLT (no sale of property)
A charitable deduction is generated to pay taxes owed by the trust

Relief from Investment and Real Estate Management Responsibilities

By using a CLT, you reduce your investment and management responsibilities for the life of the trust
Pepperdine boasts a full staff of investment and real estate professionals that is well-versed in managing trust assets, or you can choose your own
When trust assets increase, your family benefits and no further gift or estate taxes are owed

Transfer Asset to Trust

*Stock, cash, or real estate

*Charitable gift or estate tax deduction

*Wealth transfer benefits

Income to Pepperdine

*Income to Pepperdine for life or a fixed term of years

*Gift benefits Pepperdine students

Remainder to Family

*Trust assets returned to family