A charitable lead trust is basically the opposite of a charitable remainder trust. It pays a specified dollar amount, or percentage of the trust’s assets, to the Museum for the lifetime of one or more individuals, or for a fixed number of years.
When you establish the trust, you select the trust period and the amount or percentage of the payments. At the end of the trust period, the remainder of the trust’s assets is returned to you, or, typically, is passed on as you direct to your designated beneficiary or beneficiaries. This type of trust allows you to reduce the amount of your assets that might otherwise be subject to estate and gift taxes.
Charitable lead trusts are typically feasible in amounts of $500,000 or more. Members of the Museum’s Professional Advisory Committee will be pleased to discuss with you the terms and provisions of this type of trust.