Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at DAV (Disabled American Veterans) 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 Disabled American Veterans 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 DAV:

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

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

FreeWill

DAV has partnered with FreeWill to provide our friends and supporters with the opportunity to write a legal will at absolutely no cost. Begin your free will at freewill.com/DAV, ensuring your legacy will help serve more than a million disabled veterans each year!

An Example of How It Works

Father smiling with children George would like to support DAV 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 DAV 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 $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

  1. Contact a gift planning expert at (800) 216-9802 then press 1 or giftplanning@dav.org to talk about supporting DAV by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include DAV in your plans, please use our legal name and federal tax ID.

Legal name: Disabled American Veterans
Address: P.O. Box 14301, Cincinnati, Ohio 45250
Federal tax ID number: 31-0263158

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 Free Resource

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

Download My Kit