Charitable Lead Trusts

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Charitable Lead Trusts

Charitable Lead Trusts

A Charitable Lead Trust is most appropriate when donors have little need for the additional income that an asset produces.

But instead of the donor receiving an annual distribution, the charity receives the annual distributions for a period of time, at the end of which the property reverts to the donor’s heirs.

A Charitable Lead Trust is most appropriate when donors have little need for the additional income that an asset produces, yet wish to transfer the value of the asset to their heirs with minimal tax consequences.

This technique transfers sizable amounts to family members with reduced gift and estate taxes, and the generation-skipping tax is often minimized. Unlike a Charitable Remainder Trust, a lead trust does not necessarily entitle the donor to an income tax deduction at the onset of the trust.

To participate in NCCF’s Charitable Lead Trust program, contact NCCF directly for more information.