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