Charitable Lead Trusts

With a Charitable Lead Trust, you, the donor, transfer assets to a trust and the income from the trust is transferred to St. Sebastian Parish Foundation annually for a specified term. At the end of the trust term, the remainder is passed along to your heirs. 

Charitable Lead Trust

A Charitable Lead Trust pays an annual amount based on a percentage of the value of the trust’s assets. The assets are valued annually, making the payout variable.

A charitable lead trust is designed to reduce your heirs’ taxable income by first donating a portion of the trust's income to St. Sebastian Parish Foundation and then, after a specified period of time, transferring the remainder of the trust to your heirs’. You, the donor, will transfer assets to such a trust and the income from the trust will be donated to St. Sebastian Parish Foundation annually for a specified term. At the end of the trust’s term, the trust will be passed to your heirs.

The whole idea of a charitable lead trust is to reduce the amount of taxes upon the estate left after your passing. You simply donate the trust’s income to St. Sebastian Parish Foundation from your estate until all taxes are reduced. Once this is accomplished, the estate is then transferred to your heirs, who typically will face lower taxes.

Charitable Lead Annuity Trust

A Charitable Lead Annuity Trust pays a fixed amount based on a percentage of the value of the trust’s assets when it is established and does not fluctuate.