Charitable lead trusts are essentially the reverse of charitable remainder trusts. The income from the trust is first paid to us; the charity’s interest leads the way (hence the name of the trust). With this trust, you transfer assets to a trustee who makes payments to us for a specified number of years, after which time the assets are transferred to your heirs. The charitable lead trust allows you to pass assets on to your children and grandchildren either completely free or substantially free of all estate and gift taxes. It can make good sense for anyone in the top estate and gift tax brackets.
This information is necessarily general in nature; you should contact your own attorney, accountant, or other qualified financial and estate planning professional regarding how it relates to your specific situation. We would be pleased to provide you with additional information – at no obligation – on how planned giving can be of benefit in your overall financial or estate plan.