Charitable Lead Trust

Charitable Lead Trust

A charitable lead trust is the mirror image of a charitable remainder trust, in that the donor loans assets to Wagner for the term of the trust.  The donor transfers assets to the trust, which distributes its income to Wagner for a set term, such as the life of the donor or a given number of years.  At the end of the trust term, the assets of the trust are distributed to non-charitable beneficiaries – heirs, usually children or grandchildren.

With a charitable lead trust, the donor is able to make a current gift to Wagner without giving away assets while eliminating transfer taxes (estate and/or gift taxes) when the assets come to the heirs.