Nongrantor Lead Trust

How It Works

1. Create trust agreement stating terms of the trust (usually for a term of years) and transfer cash or other property to trustee (UJA-Federation or financial institution)
2. Trustee invests and manages trust assets and makes annual payments to UJA-Federation
3. Remainder transferred to heirs

Benefits

• Annual gift to UJA-Federation
• Future gift to heirs at fraction of property's value for transfer-tax purposes
• Professional management of assets during term of trust
• No charitable income-tax deduction, but donor not taxed on annual income of the trust

Read a detailed description of this gift

More Information