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Charitable lead trusts enable the transfer of property to
family members with significantly reduced gift or estate taxes.
At the same time, your client will be making a valuable contribution
to The Jewish Community Foundation to help with critical needs
now—or to support initiatives and organizations in the
future.
Establishing A Charitable Lead Trust
A charitable lead trust is established for a specific term
by contributing an income-generating asset, often real estate.
The trust pays a fixed annual amount to The Jewish Community
Foundation until the end of the term.
Tax benefits
Any gift or estate tax that might be due as a result of the
transfer of the assets to the next generation is based on
the value of the property at the time of contribution to the
trust. These taxes are offset or eliminated by a deduction
based on the annual income that will be distributed to the
charity over the term of the trust. The payment rate and term
of the trust are selected to minimize these taxes. At the
end of the trust term, the assets are transferred to the next
generation and no taxes are due as a result of any appreciation
of the assets while held in the trust.
At a glance
- Offsets gift and estate taxes on inter-generational transfers
of assets
- Eliminates gift or estate tax on future appreciation of
the transferred assets
More...
>>
Get a complete legal and tax overview of lead trusts and other
deferred gifts in GiftLaw Pro under "Chapter 3—Deferred
Gifts".
>> Do a calculation
of the potential tax benefits of establishing a charitable
lead trust
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