Charitable Lead Trusts

With a charitable lead trust (CLT), you can make annual gifts to support an area of interest to you at CFGP for a term of years.

A charitable lead trust is an irrevocable trust account, funded with cash, stock, bonds, land, or other marketable assets. The trust makes periodic payments to CFGP. At the end of the trust, the remaining assets are distributed to your designated heirs.

This useful wealth-transfer tool enables you to provide for your heirs, while sharply reducing gift and estate taxes.

The annual payments to CFGP can be based on a fixed schedule determined when you fund your gift, or can be based on a fixed percentage of the value of the trust assets, and fluctuate from year.

Benefits

  • See your philanthropy in action during your lifetime
  • Federal gift and estate-tax deductions for the value of annual trust payments to CFGP may enable you to transfer to your heirs a larger estate after tax than would otherwise be possible
  • Any appreciation in the assets during the term of the trust, while subject to capital gains tax, is not subject to gift or estate tax at the trust’s termination
  • You choose the time period of the trust goals

A CLT can make payments in one of two ways: A charitable lead annuity trust pays a fixed amount each year to the Catholic Foundation of Greater Philadelphia, whereas a charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, the payments to CFGP go up as well. On the other hand, if the assets decrease in value, so do payments.

Low interest rates make the annuity payment option attractive for donors as more assets may be passed on to heirs with reduced or eliminated transfer tax liability.

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Learn more about the steps in thoughtful planning. The Catholic Foundation of Greater Philadelphia is established to be a tool for you to leave a lasting and secure legacy. Use our request for information form to learn more.