Grantor Lead Trust
How It Works
- Create trust agreement stating terms of the trust (usually for a term of years), transfer cash or other property to trustee, and receive an income-tax deduction
- Trustee invests and manages trust assets and makes annual payments to Women In Distress
- Remainder transferred back to you
- Annual gift to Women In Dsitress
- Property returned to donor at end of trust term
- Professional management of assets during term of trust
- Charitable income-tax deduction, but you are taxed on trust’s annual income
Did you know?
Gift Range: $100,000 or more
A grantor lead trust provides a donor with a charitable income-tax deduction for the present value of the payments WID is to receive from the trust for a specified period of time. The donor, however, continues to be taxed on the income earned by the trust each year—including the amount distributed to WID. (To avoid this negative tax result, donors often fund grantor lead trusts with tax-exempt securities.) At the end of the trust term, the assets are returned to the donor.