A non-grantor charitable lead annuity trust is a gift plan defined by federal tax law that allows you to transfer assets to your family at reduced tax cost while making a generous gift to SD Parks and Wildlife Foundation.

As a lead annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, SD Parks and Wildlife Foundation or a bank trust department). During the trust's term, usually a fixed number of years, the trustee invests the trust's assets. Each year, the trustee distributes a fixed dollar amount each year to SD Parks and Wildlife Foundation. These payments are used for the charitable purpose you designate and are made out of trust income, or trust principal if the trust income is not adequate. If trust income for a given year exceeds the annual charitable payment, the trust pays income tax on the excess.

When the lead annuity trust term ends, its charitable payments cease and the trust distributes all of its accumulated assets to family members or other beneficiaries named by you.

If you irrevocably transfer $50,000 in cash to a non-grantor lead annuity trust that pays 7% of its initial value each year to SD Parks and Wildlife Foundation for the lifetime of an individual, age 72,