Charitable Lead Trusts
Charitable Lead Trusts are often referred to as a “gift on loan.” These trusts are somewhat the opposite of the charitable remainder trust. You gift assets to the lead trust which then pays DHMC a fixed sum annually for a fixed number of years. After this term of years, the remaining trust balance is distributed to family or friends. These plans are often used by high net worth donors who want to distribute their estates at reduced tax rates while providing an immediate benefit to charity.
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The Need: A donor would like to make a significant gift to DHMC and provide a future gift to family members while minimizing gift and estate taxes on this transfer.
A Solution: Transfer the assets to a charitable lead trust, provide current support to the Medical Center for a specified term of years, and ultimately distribute the assets to the donor’s family.
The Benefits:
- Reduce or eliminate estate and/or gift taxes on the transfer of assets to family members.
- Make a current gift to DHMC without giving away your property.
- Control when younger family members receive an inheritance.
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A charitable lead trust works well for donors with larger estates. For the most benefit, it isadvantageous to select property that is expected to grow significantly in the future when establishing a charitable lead trust.
For more information, e-mail the DHMC Office of Gift Planning or call us toll free at (866) 272-1955.
