The Charitable Lead Trust

Benefits of the Charitable Lead Trust – The tremendous estate-tax-savings potential is the biggest reason why individuals consider a Charitable Lead Trust.  Technically, the moment cash or other property is put into the trust it no longer belongs to the client.  Therefore, assuming the ultimate beneficiary is someone other than the client themselves, it cannot be taxed as part of the client's estate.  If the client retains the right to recover the trust principal at the end of the trust, the present value of that right at the date of the client's death will be included in their estate. A Charitable Lead Trust is an acceptable option for the client who is willing and able to personally give up income for a given period of time, but would like the capital either to come back to them personally or to pass to a designated family member or others at the end of that time.

For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future.  Jeremiah 29:11 (NIV)