An Example of How It Works

Man smilingGeorge would like to support Meals on Wheels 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 Meals on Wheels 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 $854,311. 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 3.2 percent charitable midterm federal rate.

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Next Steps

  1. Contact Christine Hockin-Boyd at 817.558.2840 or 972.351.9943 or christine@mowjec.org to talk about supporting Meals on Wheels by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Meals on Wheels in your plans, please use our legal name and federal tax ID.

Legal Name: Meals on Wheels of Johnson and Ellis Counties
Address: Cleburne, Texas
Federal Tax ID Number: 75-1555153