Lead Annuity Trust for Term of 1-35 Years Deduction Calculator

This lead annuity trust pays a fixed amount each year to a qualified organization for from one to thirty-five years, with remainder to family or family trust.

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Gift Date

Month:

Day:

Year:

Please enter a valid gift date

Gift month field is required

Gift day field is required

Gift year field is required

Rate of the Month

The current Rate of the Month (AFR) will display in the drop down box. Choose one of the three rates offered.

Donor

Donor is required

Beneficiary

Enter the name of the Beneficiary. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", etc.

Beneficiary is required

Term of Years

Years

Enter the term of years the trust will last, i.e., distribute income to the named beneficiary(ies). The term cannot exceed 20 years.

Term of years is required

Trust Amount $

Please enter a valid trust amount

Trust amount is required

Enter the amount of cash or the fair market value (FMV) of the assest(s) used to fund the trust. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Payout

Trust payout is required

Payout must be between 5% and 50%

Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

Under the Internal Revenue Code, the charitable income tax deduction must be at least 10% of the initial value. The payout amount has been lowered to qualify under the IRS 10% deduction test. This calculation includes a safety factor of 0.04%. The deduction factor will be 0.10040 or greater. The Maximum Payout Rate by Crescendo 10% Deduction Test: cres_calc_maxrate10

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The Utah Valley University Planned Giving Department provides information on charitable giving opportunities and financial planning tools, including calculators, as a public service for educational purposes only. This content is not intended as legal, tax, or financial advice. Individuals are encouraged to consult with their own financial, legal, or tax advisors when making decisions about charitable giving or tax and financial strategies.

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Lead Annuity Trust for Term of 1-35 Years Deduction Calculator

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Utah Valley University
in a Meaningful Way