What is the financial value of making a donation during an economic recession?
During this economic recession, the charitable midterm federal rate, the interest rate used in calculating the amount of the gift subject to tax, is the lowest it has ever been. Compared to the highest it has been, 11.6 percent in 1989, the current low rates mean a higher tax savings for funding a charitable lead trust. The best gift tax breaks combined with assets that may be depressed in value temporarily create the perfect opportunity to consider a lead trust.
