Charitable Lead Trust |
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A donor creates a charitable lead trust by transferring ownership of an asset to a trust. The trust gives the income, or a percentage of the income, to Raritan Bay Healthcare Foundation for a period of years, usually 15 to 20. At the end of this period the trust assets are given back to the donor or to named beneficiaries. During this period, the income can be used to support Raritan Bay Healthcare Foundation.
The lead trust is often used with assets with a potential for continued high appreciation. The trust permits the assets to be transferred to other family members at a low transfer cost.
Utilizing the lead trust a donor may leave a significantly larger inheritance to his or her heirs than he or she could have left via a will or other trusts.
