A Charitable Lead Trust is an excellent way to increase an inheritance for heirs while making a significant gift to the University of Kentucky. With the Charitable Lead Trust, the University does not receive the remainder of the assets in the Trust, but rather takes the lead and receives the income from the Trust either for your lifetime or a pre-established number of years. If structured properly, your non-charitable beneficiaries, such as your grandchildren, receive the remainder of the Trust at the end of the designated term free of estate and gift taxes. Additionally, no capital gains taxes are due on any appreciation that occurs on the assets while invested in the Charitable Lead Trust.
For additional information, please contact:
Ford Stanley, Senior Director of Estate and Gift Planning, Executive Director of University of Kentucky Real Estate Foundation