Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at The Harpeth Hall School 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 Harpeth Hall School 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 The Harpeth Hall School:

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

A charitable lead unitrust pays a variable amount each year to The Harpeth Hall School 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 The Harpeth Hall School go up as well.

An Example of How It Works

Campus building Elizabeth would like to support The Harpeth Hall School and provide for her children. Elizabeth received a windfall amount of income and needs a large income tax deduction to offset the income. Following her advisor’s recommendation, Elizabeth funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Elizabeth’s trust pays $60,000 (6% of the initial fair market value) to The Harpeth Hall School each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to Elizabeth. She receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, Elizabeth receives approximately $1,600,286 at the end of the trust term.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

To talk about supporting The Harpeth Hall School by setting up a charitable lead trust, email Director of Advancement moll@harpethhall.org or call 615-346-0087.
Seek the advice of your financial or legal advisor.
If you include The Harpeth Hall School in your plans, please use our legal name and federal tax ID.

Legal name: The Harpeth Hall School
Address: 3801 Hobbs Road, Nashville, TN 37215
Federal tax ID number: 62-0501916

Discover More

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