Charitable Lead Trusts

If you would like to provide significant support to the Lymphoma Research Foundation (LRF) and have little immediate need for additional income, consider establishing a charitable lead trust.   A charitable lead trust allows you to provide income to LRF during the term of the trust and at the end of the trust term, the remaining property returns to you or passes to someone you have designated at reduced or no tax cost. You can choose to establish a Charitable Lead Annuity Trust (CLAT), which will pay a fixed amount to LRF for a period of years.  Or, you can choose to establish a Charitable Lead Unitrust (CLUT), which will pay a variable amount to LRF for a period of years. 

How does it work?

You contribute securities or other appreciating assets to a charitable lead trust.  The trust makes fixed or variable annual payments to LRF for a period of years that you determine.  When the trust terminates, the remaining principal is distributed one of two ways:

Non-Grantor Lead Trust – This type of lead trust allows you to pass assets to your heirs at reduced or no tax cost.  Although you do not receive a charitable deduction, you do receive a gift tax deduction.

Grantor Lead Trust – This type of lead trust allows you to receive a significant charitable deduction, without having to permanently part with a valuable asset.  You also receive a significant, immediate income tax charitable deduction equal to the present value of the total income payments to LRF.

Your Benefits

  • You can make a major gift to LRF and still preserve assets for yourself or your heirs.
  • The Lead Trust may enable you to transfer specific assets (such as stock in a family-owned business or income-producing real estate) to your heirs with little or no transfer taxes.
  • Your gift may result in a substantial reduction in gift and estate taxes.

For more information about how a charitable lead trust would benefit you, or to learn more about the different ways you can support the Lymphoma Research Foundation through gift planning, please contact Evelyn Lipori, Director of Individual Giving, at (646) 465-9126 or elipori@lymphoma.org.  All inquiries are confidential.

This information is not intended to represent legal or tax advice or to substitute for such advice. We recommend that you consult your professional advisors when considering your charitable gift planning options.

 

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