Charitable Lead Trust

What it Means

A Charitable Lead Trust means a donor irrevocably transfers assets to a trustee and has income from the trust paid to a nonprofit endowment fund either for a certain number of years or until the donor’s death. At the end of the trust’s term, the principal is distributed to heirs

How It Works

1. You transfer cash, securities or other appreciated property into a trust
2. The trust makes fixed annual payments to the Asbury Foundation for a set period of time
3. When the trust ends, the principal passes to your Family

Benefits

Allows you to…

• Support Asbury through the Asbury Foundation for a “Lead” time, either a specified period of years or a lifetime;
• Retain a beneficial interest in the assets remaining after the Lead period;
• Contribute a highly appreciated asset to the trust due to potential tax savings
• The taxable value of the gift to heirs is reduced the taxable value of the gift to the heir because the heirs will not actually receive it until some time in the future.
• The taxable value of the gift is also offset the taxable value of the gift by a deduction for the present value of the payments that will be made to charity.
• The charitable payments from the trust can fund current ministries for Asbury

The content provided on The Asbury Foundation site is not offered as legal or tax advice. Examples of tax benefits may or may not apply to your own situation at the time of your gift. The Asbury Foundation urges donors to seek the advice of a tax advisor, attorney, and/or financial planner to make certain a contemplated gift fits well into your overall circumstances and planning. All material is presented solely as educational information and is not a solicitation or offer.