Charitable Lead Trusts
Generosity with personal benefit
A Charitable Lead Trust (CLT) is an irrevocable trust designed to provide income payments to charitable organizations for a fixed term. To start a CLT, the donor transfers assets to the trustee. The PCAF can serve as trustee. The trustee invests and manages the assets, making annual payments to a designated charitable beneficiary.
At the end of the trust, assets are distributed one of two ways:
1) To the donor (Grantor Lead Trust)
2) To a named beneficiary or beneficiaries (Non-Grantor Lead Trust).
These CLTs can be structured to commence during the donor’s lifetime or upon death. The minimum amount required to establish a CLT with the PCA Foundation is $50,000. The CLT is subject to fees.
|Comparison of CLT Features||Non-Grantor Lead Trust||Grantor Lead Trust|
|Donor receives income tax deduction||No||Yes|
|Estate and gift tax deduction||Yes||No|
|Trust income taxable to donor||No||Yes|
|Remainder interest passes to …||Heirs||Donor|