Giving through
Lead Trusts

MISSOURI SOUTHERN FOUNDATION
In Support of Missouri Southern State University

By creating a charitable Lead Trust you are in effect loaning the Missouri Southern Foundation your property. You will place in trust to the Foundation real or personal property (cash, securities, mutual funds, etc.). The Foundation will manage your assets and receive the income from the assets for a pre-determined number of years. The Lead Trust allows you to make a gift to the college now and either have the assets returned to you or passed on to your children or others. Some advantages to the Lead Trust are:

• The donor receives a charitable deduction for any income generated by the trust and paid to the Foundation.
• The assets may be returned to the donor after a pre-determined number of years or passed on to the donors’ beneficiaries.

• If the assets in trust pass directly to your beneficiaries:

• Assets in the trust bypass probate, they do not become part of your estate and therefore avoid estate taxes.

• Since the assets are not considered part of your estate, they pass directly to your beneficiaries insuring your privacy by avoiding public scrutiny as part of the probate process.

• Your assets are not subject to probate costs.

An example of a charitable Lead Trust:

Mrs. Smith is a widow, has a large appreciated stock holding, and wants to make a gift to the Missouri Southern Foundation while insuring the future of her granddaughter. Mrs. Smith decides to transfer $500,000 in appreciated stock to a charitable lead trust. The trustee will sell the stock at its current fair market value and reinvests the proceeds. Each year the Foundation will receive the income from the investment and use it for the College. At Mrs. Smith’s death the assets will pass to her granddaughter to be used as directed by Mrs. Smith. By creating a charitable lead trust, Mrs. Smith will enjoy making a contribution to the College during her lifetime, receive a charitable tax deduction each year, and provide for her grand daughter’s future.

This is only one example of how a charitable lead trust can be created to meet the needs of a donor. In all cases, donors should consult their attorney, accountant, or estate planner when considering gift giving.