Here's how it works...

  • You contribute securities or other appreciated assets to a Charitable Lead Trust. Our suggested minimum gift is $1,000,000.
  • The trust makes annual payments to Seton Hall Prep for a period of time.
  • When the trust terminates, the remaining principal is paid to you or heirs.

Benefits

  • Income payments to SHP for a term will reduce the ultimate tax cost of transferring an asset to your heirs.
  • The amount and term of the payments to SHP can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
  • All appreciation that takes place in the trust may go tax-free to the individuals named in your trust.


Give Your Estate Tax to The Prep instead of the IRS!

Would you like to leave more of your estate for your heirs and The Prep at the same time? A Charitable Lead Trust (CLT) allows you to do both!
  • A CLT holds your gift of appreciating assets, pays income to Seton Hall Prep for a period of years, and then gives the remaining principal to you or your heirs.
  • A Lead Trust is very useful in estate and family wealth planning.
  • While making a generous gift, it can shelter growing assets that are passed to your heirs.
  • Many donors use this gift plan to pass assets to their children or other heirs. The non-grantor lead trust will pay its principal balance to remainder beneficiaries.

Will your children face a tax burden when you die?

Non-grantor lead trusts reduce the cost of passing property to your
heirs in two ways. First, the estate & gift tax value of assets you place in
your lead trust will be reduced by the present value of the income that
the trust will pay to Seton Hall Prep. The longer the lead trust pays us income, and the more income it pays us, the larger your estate and gift tax deduction will be. Second, the taxable value of the lead trust assets is fixed as of the time you establish the trust — any subsequent increase in the value of the assets will pass to your heirs outside your estate and are thus free of estate and gift tax.

This combined reduction in the taxable value of the lead trust assets
means that your family can sometimes receive more from an estate
plan containing a lead trust than they could from an outright bequest
from you.

Planning notes...
  • A non-grantor lead trust can be funded with shares in a growing family business, thus lowering the cost of passing ownership on to the next generation.
  • The income earned by a non-grantor lead trust while it is in operation is not taxable to you.
  • The trust can run for a term of years or the lifetime of an individual.
  • Unlike most other gift plans, a lead trust provides immediate benefits to The Prep. Payments from a CLT can be used to fund capital projects, annual support, or an endowment.
  • A lead trust can pay SHP a fixed amount of income every year, or pay SHP a fixed percentage of the value of trust principal, as revalued annually. The choice of format will have some effect on your tax savings. We can help you and your advisors model the different options as you consider your gift plan.

Are you concerned about high income tax liability?
You may be in a high earnings period where redirecting some income to
charity makes sense. You may want to accelerate future deductions
into the current year but don't want to part permanently with a
valuable asset. Examine a grantor lead trust. This creative plan will hold your gift of appreciating assets, pay income to Seton Hall Prep for a
period of years — then return the assets to you. You will receive an
immediate income tax deduction for creating the grantor lead trust: the
present value of the total income payments to SHP (you receive no
income tax deduction when you establish a non-grantor lead trust
which transfers assets to your heirs).

The trust's annual earnings (minus the distributions to us) will be
taxable to you. However, if the amount of SHP's income and the length of
time it receives this income are adjusted sufficiently, the upfront deduction can offset this subsequent tax.

Talk to your advisor about how a lead trust can work for you and your family.

Welcome to the
MSGR. WILLIAM J. DALY ’38
PLANNED GIVING SOCIETY

The is the special recognition association named for Msgr. William J. Daly ‘38, who served as a teacher, counselor and Assistant Headmaster at Seton Hall Prep from 1946-1967, and who made a lasting impact on the lives and the futures of countless young men. 

By sharing your generous news with us about including The Prep in your giving plans, you will automatically be enrolled into 

THE MSGR. WILLIAM J. DALY ’38
PLANNED GIVING SOCIETY
.

Please allow us to thank you!

We would like to thank you for your generosity by including you in The Msgr. William J. Daly '38 Planned Giving Society, so if you have made provisions in your estate for a gift to Seton Hall Preparatory School, you can let us know in two ways:

  • Print and complete the PDF version of our Estate Gift Confirmation Form, and return it to Seton Hall Prep by e-mail or mail at advancement@shp.org or by USPS to:
    Seton Hall Prep
    Attn: Msgr. Michael Kelly
    120 Northfield Avenue
    West Orange, NJ 07052

    If you are comfortable sharing any documentation of your estate gift, please include it with the form to enable us to more effectively steward your gift. The particular details that you provide on these forms, as well as any additional information that you choose share with us, will remain confidential.

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