Individuals with very large estates can use a charitable lead trust to benefit the American Red Cross of Rhode Island and pass principal to family
members with little or no tax penalty.
HOW IT WORKS
You transfer assets to a trust that provides
payments to the American Red Cross of Rhode Island for a term of years. Then the trust principal goes to your children, grandchildren, or others
free of, or at greatly reduced, federal gift and estate tax. (Please note that a generation skipping tax (GST) is imposed on large transfers to grandchildren and
others who are more than one generation younger than you.)
For more information, please contact Kristin Wieber Naragon, Chief Philanthropy Officer, at [email protected] or call 401-831-7700 x106.