Planned Giving


Charitible Lead Trusts

What is a Charitable Lead Trust?

The Charitable Lead Trust (CLT) is a powerful way to make a future transfer of assets to you heirs at a significantly reduced gift and estate tax cost, while supporting Amnesty International with the income during the term of the trust. During a specified number of years, an annuity or a fixed percentage of the trust assets is paid to Amnesty International USA. At the end of the trust term, the assets are passed to the beneficiaries you name. You can choose the trustee. CLTs are usually funded with assets in excess of $500,000.

Two Types of Lead Trusts

There are two basic types of Lead Trusts: Non-Grantor and Grantor.

In a non-grantor CLT - the most common type - the assets revert to your children, grandchildren, or other heirs. A non-grantor CLT provides a gift tax deduction, and is useful in reducing the cost of intergenerational wealth transfers. In a grantor CLT, the assets revert to you, rather than to your heirs, at the end of the term. A grantor CLT provides an income tax deduction, and may be useful if you with to accelerate future deductions into the current year. Note: the information provided below pertains to non-grantor CLTs only.

What Are The Advantages of a CLT?

For people who have significant assets, a CLT offers gift and estate tax relief:

You greatly reduce capital gains liability on any appreciated assets that you contribute to a CRT.

You receive a charitable income tax deduction in the year you make your gift, with an additional five years to carry over any unused deduction.

You and/or your designated beneficiaries can receive income for life, or for any term of years you specify up to 20.

You can add to the unitrust version of a CRT at any time.

Any assets you contribute to a CRT are removed from your estate, reducing your estate tax liability.

Through reinvestment within the trust, you can achieve diversification of a previously concentrated asset.

You can gain the advantage of your chosen trustee's professional investment management expertise for your trust.

You will have the satisfaction of knowing that you are benefiting the future of human rights