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Lead Trusts

Charitable Lead Trust- "CLT"

Lead trusts provide a way for you to transfer wealth to succeeding generations with significantly reduced transfer taxes. It is the reverse of a unitrust or annuity because the charity receives income from the unitrust or annuity amount first, and at the trust's termination all trust assets are paid back to you or to your heirs

You establish a lead trust by setting up an "inter vivos" (during lifetime) or "testamentary" (upon death) trust. After a term of years (twenty or less), or for a term measured by a designated person's lifetime, the trust terminates. The remaining principal can revert to you and/or your spouse ("grantor lead trust"), or, more commonly, to your heirs ("non-grantor lead trust"). The rules are complicated; we would be pleased to discuss them with you.

Suggested Minimum: $1,000,000 (Cash or appreciated securities).

Age: 60+