Gifts That Reduce Gift Taxes and Estate Taxes

A charitable lead trust gives you an opportunity to reduce the gift- and estate-taxes that may be due for a transfer to one or more heirs. 

A charitable lead trust may be a true win-win opportunity for many people:

• By setting aside a lump sum of assets that pay regular income to the Foundation for a period of years, you may earn significant reductions (sometimes elimination) of gift- and estate-taxes that would have been due on a transfer of those assets to heirs.
• When the trust term ends, heirs receive any remaining assets (even if they increased in value) estate-tax free, although some gift taxes may apply.
• The assets placed in this arrangement may include income-producing assets such as real estate, securities, and even, sometimes, small business interests.