Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at the Montana Community Foundation and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to the Montana Community Foundation to benefit one or more of our endowment funds for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.

There are two ways that charitable lead trusts make payments to MCF:

A charitable lead annuity trust pays a fixed amount each year to MCF and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to MCF 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 MCF go up as well.

An Example of How It Works

A stream through rocky terrain. George would like to support MCF 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% of the initial fair market value) to MCF to support the endowment funds he chooses as the beneficiaries 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 and, as a Montana taxpayer, also qualifies for the maximum Montana Endowment Tax Credit of $10,000. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.

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Next Steps

  1. Contact The Montana Community Foundation at (406) 443-8313 or info@mtcf.org to talk about supporting MCF by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include MCF in your plans, please use our legal name and federal tax ID.

Legal name: Montana Community Foundation
Address: 33 S. Last Chance Gulch, Ste. 2A Helena, MT 59601
Federal tax ID number: 81-0450150

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.

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Personal Estate Planning Kit

Our Top Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy.

Download My Kit