Grantor Lead Trust

Gift Range: $100,000 or more

A grantor lead trust provides a donor with a charitable income-tax deduction for the present value of the payments UJA-Federation is to receive from the trust for a specified period of time. The donor, however, continues to be taxed on the income earned by the trust each year—including the amount distributed to UJA-Federation. (To avoid this negative tax result, donors often fund grantor lead trusts with tax-exempt securities.) At the end of the trust term, the assets are returned to the donor.

Want to see a diagram about how grantor lead trusts work? View the diagram of this gift

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