Section Navigation

Provide for Your Loved Ones and MSUAF

Charitable Lead Trusts

MSUDo you want to benefit from the tax savings that result from supporting Montana State University, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.

There are two ways charitable lead trusts make payments:

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

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

Ready to start paying it forward?

View My Free Brochure

Calculate Your Benefits

Gift Illustrator

Submit a few details and see how a charitable lead trust can benefit you.

See My Benefits

A possible scenario

George would like to support MSU 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 percent of the initial fair market value) to MSU 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 $873,110. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 2.4 percent charitable midterm federal rate.

How to Fund It

You can use the following assets to fund a charitable lead trust:

Ready to start paying it forward?

View My Free Brochure

Not Sure How to Begin Planning?

Download our FREE Personal Estate Planning Kit

Next Steps

  1. Contact Samantha Beebout at 406-994-4815 or to talk about supporting Montana State University by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Montana State University in your plans, please use our legal name and federal tax ID.

Legal Name: Montana State University Foundation, Inc.
Address: 1501 South 11th Avenue, Bozeman, MT 59717
Federal Tax ID Number: 81-6001649