A charitable lead trust is the mirror image of a charitable remainder trust. To establish a lead trust, the donor places certain assets in an irrevocable trust for a set number of years, during which time the trust makes annual payments to Redwood. When the trust terminates, the assets go to beneficiaries named by the donor — typically children or grandchildren. Since the trust is considered to be outside the donor’s estate, any growth in the value of the assets during the trust’s term may pass to the beneficiaries tax-free. The donor also receives a gift tax deduction the year the trust is established based on the present value of the totals received by Redwood Library during the term of the trust. All charitable lead trusts should always be done in consultation with the donor’s financial and legal advisors.
For more information on becoming a member of the Charles Bird King Society, please contact Alyssa Gaudreau, Donor Relations Manager, at 401-847-0292, ext. 115 or firstname.lastname@example.org.