A charitable lead trust can be an effective estate planning tool to transfer the assets to your heirs with significant tax advantages while making a meaningful gift to the Museum of Tolerance. You can establish a lead trust that will make income payments to the Museum for a pre-determined term of years. After the trust term, the assets are distributed to you or your heirs. There are two types of lead trusts: the grantor lead trust and the non-grantor lead trust.
Grantor Lead Trusts
As a grantor lead trust donor, you contribute assets to a trust, which makes payments to the Museum of Tolerance for the duration of the trust. When the trust terminates, the assets revert to you and/or your spouse. When you establish a grantor lead trust, you are entitled to an immediate income tax charitable deduction equal to the present value of the income stream, the Museum of Tolerance will receive during the life of the trust.
Non-Grantor Lead Trusts
As a non-grantor lead trust donor, you contribute assets to a trust, which makes payments to the Museum for the trust term. When a non-grantor trust terminates, the assets are transferred to someone other than you and/or spouse, usually your children or grandchildren. When you create a non-grantor lead trust, you do not qualify for an income tax charitable deduction, however, you will enjoy a substantial reduction in estate and gift taxes on the future transfer of assets to your heirs.
For more information, contact:
Rabbi Meyer H. May