Charitable Lead Trusts
If you have substantial net worth and are interested in the following you may wish to consider a Charitable Lead Trust:
- Make regular gifts to Bideawee
- Provide for your heirs
- Engage in proactive financial planning
- Minimize estate transfer taxes
Lead Trusts are sophisticated arrangements that can offer clear benefits if you have substantial net worth, usually a minimum of $500,000 in assets that are not required for the production of income or for your future financial security.
Lead Trusts are gift plans that permit you to place assets in trust to make specified payments to Bideawee for a designated period of time.
At the end of the period, depending on the type of Lead Trust, either you regain possession of the corpus of the trust (a "grantor" trust) or the trustee distributes that corpus to others (a "non-grantor" trust). The non-grantor trust is the type generally used for estate planning purposes.
You may create a Charitable Lead Trust either by agreement during your lifetime or in your will. It is called a "lead" trust because charity receives the income or "lead" interest for a period of time, after which the corpus goes to others.
The most attractive advantage of a Lead Trust is that you may be able to reduce the tax cost of transferring assets to family members and fulfill your charitable intentions at the same time. A non-grantor Charitable Lead Trust permits you to select the payout rate to the charity and the period of time over which the trust will make payouts.
