Director of Planned Giving

Michael Afflitto, CAPĀ®

Michael Afflitto, CAP®
Southern New England Division
855 Asylum Avenue
Hartford, CT 06105
Toll Free: 1-888-468-5356
Tel: 860-702-0070 Direct

Planned Giving Options

Recent Newsletters

Charitable Lead Trust

Some People's Legacies are Engraved on Monuments .....

Planned Giving Legacy

Yours Can be Written on Lives.

Charitable Lead Trust

The Charitable Lead Trust first gained wide-spread attention with the publicity drawn to the Jacqueline Onassis estate. And, today, with interest rates still relatively low, the time may be especially ripe to explore its unique benefits. Low interest rates can mean larger savings in transfer taxes (gift and estate taxes) for the donor and larger immediate gifts for the designated charity. To be sure, the Charitable Lead Trust is not a plan for everyone, but it can be a win/win opportunity for many major donors and qualified charities.

How does a lead trust work?

You make an irrevocable transfer of assets to a trust for a term of years or for the life of an individual. At the end of the term, the principal can return to you or pass to other beneficiaries (usually your children or grandchildren). With careful planning, you can substantially reduce -- or even eliminate -- estate and gift taxes.

In a sense, the lead trust is the mirror opposite of the popular Charitable Remainder Trust. But, instead of paying an income to individual beneficiaries with the remainder interest going to charity, the trust pays income to charity for the period of time with the remainder interest going to the beneficiaries. While there are different kinds of lead trusts, the most popular kind, is the one in which the remainder interest goes to the grantor's family rather than reverting to the grantor -- the non-grantor or family lead trust.

A Charitable Lead Trust can be established either during your lifetime or in your Will (many lead trusts are created by Will). However while federal interest rates are still relatively low (low interst rates generate higher charitablie deductions for lead trusts), there is an incentive to create and fund a lead trust during life rather than risk much higher rates and a lower charitable deduction when the trust comes into existence at some uncertain time under a Will.

We would be happy to work with you and your advisors to help you map our your best plan of action. If you would like more information on Charitable Lead Trusts, please contact Michael Afflitto.