Charitable Lead Trusts

A Charitable Lead Trust lets you make significant charitable gifts now while transferring substantial assets to beneficiaries later. We will receive funds from your trust that can go to support nonprofits you choose or be added to an Advised Fund. When the trust terminates, the principal is returned to you or your designee at a reduced tax cost—sometimes even tax-free.

Miss Patricia
Linda Crank Moseley established a Charitable Lead Trust in 1994, naming the Foundation as the Charitable Beneficiary of the Trust. She used the income from the Trust to establish the Linda Crank Moseley Advised Fund. She has used her advised fund to make grants to organizations that are important to her and express her philanthropic message. From her advised fund, she also created two additional funds.

How it works:

You transfer assets into a trust, which pays The Community Foundation an annual amount to build a charitable fund. During its term, the trust can be managed expertly by experienced professionals, which may help your trust investments grow over time. When the trust terminates, either upon your death or after a specified number of years, its final assets are transferred to those you designate; any growth in the trust passes to recipients, often with significant transfer-tax savings.

A Charitable Lead Trust entitles you to a number of financial benefits. It shelters investment earnings from tax, and it offers gift, estate, and generation-skipping tax benefits. For example, trust assets are removed from your estate for estate tax purposes. You may also capture future gift tax deductions. However, at the time your trust is established, you may owe gift tax on the present value of your gift to the final beneficiary.

You have several options when establishing your trust. You can create a Charitable Lead Trust during your life or through your will. The trust contributes to charity through your community foundation - either for a number of years or for your lifetime. And, you select one of two types of Charitable Lead Trusts. A Charitable Lead Unitrust makes annual distributions of a fixed percentage of the trust assets to the charitable fund you establish. If you create a Charitable Lead Annuity Trust, the charitable fund you establish will receive a fixed dollar amount each year.

The purpose of this website is to provide general gift, estate, and financial planning information. The Community Foundation for Northeast Florida is not engaged in providing legal or tax counsel. For advice or assistance in specific cases or whether to make certain a contemplated gift fits well into your overall circumstances and planning, the services of an attorney or other professional advisor should be obtained.

Contact Information

245 Riverside Avenue, Suite 310
Jacksonville, FL 32202

The Community Foundation for Northeast Florida

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