Charitable Lead Trusts

Lead the way for charity and family

If you are looking for a way to pass on some of your assets to your family while reducing or eliminating gift or estate taxes, a Charitable Lead Trust (CLT) can be an excellent option. By investing cash or appreciated assets in a CLT, you will support Children’s Health and transfer the remainder to a loved one in the future. 

How it works

1. You transfer cash or appreciated assets to a trust and receive an immediate tax deduction.

2. Children's Medical Center Foundation invests the funds and receives income from the trust for a pre-determined number of years.

3. At the term of the trust, your loved one receives the remaining trust assets, including any growth in the invested funds.

Benefits of a charitable lead trust

• Receive an income, gift and/or estate tax charitable deduction

• Pass inheritance on to family at a reduced or zero cost

• Make life better for children during your lifetime

Example: CLT funded with stock

Betty is a business owner facing a large estate tax, is charitably inclined, is grateful for the care her child received at Children's Health and wants to support the organization during her lifetime. She creates a 10-year-term CLT, makes a donation of $1,000,000 using highly appreciated stock, avoids capital gains tax and receives an immediate charitable tax deduction. The trust makes yearly payments of $50,000 to Children’s Medical Center Foundation while invested to grow over time. Betty elects to have the remainder of the trust benefit her son, Carl. She may also elect to reinvest the funds in a new CLT at the term of the trust so the funds continue to grow and can later benefit her family.

Our team is here to help

If you have questions or would like to review a custom proposal, please reach out to GiftPlanning@childrens.com or 214-456-8360.