CHARITABLE LEAD TRUSTS
A Charitable Lead Trust is an excellent way to transfer meaningful assets to family members with no, or significantly reduced, gift or estate taxes. At the same time, you will be making a valuable contribution to the Jewish community to help with critical needs now—or to support initiatives and organizations important to you now and in the future.
A Charitable Lead Trust is established for a specific term by contributing an income-generating asset, often real estate, to a trust. The trust pays a fixed annual amount to the Dallas Jewish Community Foundation for a specified term of years.
Any gift or estate tax that might be due as a result of the transfer of the assets to the next generation is based on the term of years and the resulting present value of the property at the time of contribution to the trust. While the income earned by the trust is taxable, these taxes are offset or eliminated by a deduction based on the annual income that will be distributed to the Dallas Jewish Community Foundation over the term of the trust. The payment rate and term of the trust are selected to minimize these taxes. At the end of the trust term, the assets are transferred to the beneficiary of your choosing and no taxes are due as a result of any appreciation of the assets while held in the trust.
AT-A-GLANCE
Offsets gift and estate taxes on intergenerational transfers of assets
Eliminates gift or estate tax on future appreciation of the transferred assets