Charitable Lead Trusts

A charitable lead trust is an irrevocable trust designed to make annual payments to Millikin for a specified period of time, after which the trust assets revert back to you or to beneficiaries you designate.

The two types of charitable lead trusts are grantor and non-grantor.

In a grantor charitable lead trust, the trust assets revert back to the grantor (i.e. the donor) after a specified period of time. For example, assume a donor funds a CLT with $1 million and establishes a payout rate of 5% ($50,000) annually for ten years to Millikin. After the ten year period, the assets revert back to the donor. The donor receives an income-tax deduction the year he or she establishes the trust.

In a non-grantor charitable lead trust, the trust assets are returned to another person(s) chosen by the donor. These types of trusts can provide significant tax benefits to both the donor and their heirs.

Millikin strongly advises donors to consult with their attorney and/or financial advisor for more information about establishing this gift plan.