Grantor Charitable Lead Trust

A Grantor Charitable Lead Trust allows you to give an annual income to Carleton, receive a charitable income tax deduction, and receive the remaining assets back when the trust’s term ends.

  • When you establish the trust, you qualify for an upfront charitable income tax deduction for the income stream the trust will pay to Carleton.
  • Your trust is invested and managed by the professional or private trustee of your choice.
  • You can structure the trust to pay income to multiple charities, either for a term of years or a person’s lifetime.
  • You can designate your gift to start an endowed fund or to support a particular project at Carleton.
  • The trust assets — including all appreciation — are returned to you at the end of the trust term.

Trustees’ suggested minimum funding amounts and fees will vary, but these trusts are typically funded with at least $500,000.

Download more information about grantor charitable lead trusts.

Family Trust

A Family Trust is also called a Charitable Lead Trust because the charity takes the ‘lead’ in receiving income for a period of time with the remaining assets going to the donor’s family when it expires. The donor receives an immediate tax deduction for their gift, and the assets that pass to the family.

  • A family trust lets you time your bequests precisely.
  • You can list any number of charities and all of your children as beneficiaries.
  • You “freeze” the value of the assets used to fund the trust for tax purposes. If any estate or gift taxes are owed from the trust, they are calculated and may be payable at the time of the gift.
  • Most of your gift to charity is made from what would otherwise be tax dollars.

Generally you select an attorney or professional trustee to invest and manage your trust. Family trusts typically are funded with at least $250,000 and in most cases more than $1,000,000.

Download more information about family trusts.