This is a way you can “loan” the District 207 Foundation some of your property. You turn over the assets (real or personal property such as cash or securities) to the Foundation. The Foundation manages the assets and receives the income from the assets for a predetermined number of years. At the end of the term, the assets are returned to the donor or heirs.
The charitable lead trust will produce a charitable deduction to the donor based upon the term of years of the trust and the amount paid to the charity. Deductions for income, gift and estate tax purposes, are determined by the Internal Revenue Code.
In order to ensure that the trust will produce the desired tax consequences, an attorney or knowledgeable tax advisor should be consulted before undertaking action to make this type of gift. It is important to recognize this transaction is irrevocable and cannot be altered.