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Charitable Lead Trusts

Charitable Lead Trusts

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CHARITABLE LEAD TRUSTS

A charitable lead trust can be an effective estate planning tool, allowing you to transfer assets to your heirs with significant tax advantages while making a valuable gift to Peltz Center for Jewish Life. You can establish a lead trust that will make income payments to Peltz Center for Jewish Life for a pre-determined term of years. After that term, the assets are then distributed to you or your heirs.

There are two types of lead trusts: the grantor lead trust and the non-grantor lead trust.

In a grantor lead trust, you contribute assets to a trust that makes payments to Peltz Center for Jewish Life for the duration of the trust. When the trust terminates, the assets revert to you and/or your spouse. When you establish a grantor lead trust, you are entitled to an immediate income tax charitable deduction equal to the present value of the income stream that Peltz Center for Jewish Life will receive during the life of the trust.

In a non-grantor lead trust, you contribute assets to a trust that makes payments to Peltz Center for Jewish Life for the duration of the trust. When a non-grantor trust terminates, the assets are transferred to someone other than you and/or spouse, usually your children or grandchildren. When you create a non-grantor lead trust, you do not qualify for an income tax charitable deduction -- but you will enjoy a substantial reduction in estate and gift taxes on the future transfer of assets to your heirs.

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