The Green Trust
Green Trust offers alternative to grain producers
The Foundation is offering grain producers an alternative called the Green Trust. It features:
- Avoidance of income tax and self-employment tax on grain sales – a savings of 40 percent or more. And, you may still deduct your input costs.
- Generous income from the trust, so you get all your money back and take advantage of current high grain prices.
As an example, Farmer Jones has a bumper crop of grain, but knows this expensed-out commodity will have a reduced return once taxes are taken out. He elects to put a portion of his crop – worth $240,000 – into a charitable trust with the SDSU Foundation. The trust owns the crop as it is sold and pays no taxes. The entire sale value goes into generating income for Farmer Jones. He elects a 10-year payout, for example, that pays him 10 percent of the initial trust value each year, or $24,000. In 10 years, he gets all his money back, including the $96,000 that would have been lost to taxes.
This deal is full of benefits, but Farmer Jones feels even better because there is something left in the trust for a charitable gift to SDSU. He decides to start a scholarship in his family’s name available to local youngsters.
For more information about how you can setup a Green Trust, call Jeff Nelson at 888-747-7378.