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Charitable Lead Trust

With the charitable lead trust (CLT), you can make a gift to ONU while also passing on assets to your children or grandchildren at a lower transfer tax cost. A lead trust pays either a fixed or variable income to ONU, usually for a number of years. When the trust term ends, named beneficiaries, your family, then receive the bulk of the CLT's assets.

If you create a lead trust while you are living, you receive a gift tax deduction for the value of ONU's interest in the trust. Gift tax is then due only on the value of the remainder that eventually goes to your family.
With careful planning, generation-skipping transfer tax can be minimized through the allocation of the donor exemption to the trust.

Additionally, establishing a lead trust in your will can reduce your estate tax.

The advantages of the CLT include:

  • Provide significant support for an ONU program that is important to you.
  • Provide significant inheritance for your heirs.
  • Receive a gift or estate tax deduction based on the present value of your projected gift to ONU.
  • Take advantage of the University's expertise to manage your money.
  • When your gift to Ohio Northern University is $10,000 or more, you will be invited to join the Heritage Club.

Note: No income tax deduction is available for a gift to a lead trust that eventually benefits children or grandchildren.