Giving back to community and
your loved ones
Charitable Lead Trust
A Charitable Lead Trust helps you build a charitable fund with your community foundation during the trust’s term. When the trust terminates, the remaining assets are transferred to you or your heirs, often with significant transfer-tax savings.
How it works
- You transfer cash, appreciated stocks, real estate, or other assets into an irrevocable charitable trust.
- We set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
- Your Charitable Lead Trust pays the community foundation an annual amount to build a charitable fund. You designate the trust to exist for a specified number of years or until your death.
- You also designate your family or anyone you choose as the final beneficiary of your trust.
- If you choose, you can stay involved in the good works your gift makes possible — working with our professional program staff to support the causes and agencies you care about most.
- We handle all the administrative details, issuing grant awards to charities in the name of the fund you establish (if you prefer, grants can be made anonymously).
- Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift — and all future earnings from your gift — is a permanent source of community capital, helping to do good work forever.
A lifetime gift for two
Annette Bernack wanted to create a fund to support her favorite charitable interests for years to come. At the same time, she wanted to provide an inheritance for her daughter in a way that created the least tax burden. “My attorney told me that creating a Charitable Lead Trust and designating my community foundation as a beneficiary would allow me to give to the community now and provide for my daughter later,” says Annette. Using a regular distribution from the trust, Annette has already begun to build a fund at her community foundation, which is, in turn, making grants to her community in areas important to her. The trust will continue to build the Bernack Family Fund until her death, after which the rest of the trust will transfer to Annette’s daughter. “By giving through a Charitable Lead Trust,” says Annette, “I am doing more for both my daughter and the community… and my estate will owe less in taxes.”
