Charitable Lead Trust

A charitable lead trust is the flipside of a charitable remainder trust. This irrevocable arrangement creates a steady income to Maranatha for a fixed period of time. When that time is completed, the remaining assets are transferred to your beneficiaries, tax-free.

The gains for your beneficiary are dependent on how the trust assets perform. If the investment does well, your beneficiary could receive a greater gift than first predicted. However, if the investment does not grow, then there is a risk of your beneficiary receiving far less or nothing at all.

How It Works

Robert and Linda would like to give a large gift to Maranatha but also leave a sizeable amount to their daughter. Through the help of Maranatha’s planned giving experts, they established a $1 million charitable lead trust with Maranatha receiving $50,000 each year for 20 years. There are many different options for payouts that can be fixed or variable, depending on the circumstances.

Benefits include:

  • You may qualify for a current federal income tax deduction.
  • Your beneficiaries can receive the remaining assets, tax-free.