Charitable Lead Trust

In a Charitable Lead Trust, you are able to retain ultimate possession of an asset while making a generous gift to North Shore Medical Center (NSMC). The “lead” income is paid first to NSMC, with the remainder returned to you, the grantor, or to someone else, such as heirs or designated beneficiaries at the end of the trust period.

How Charitable Lead Trusts Work


Assets - typically cash or securities -- are transferred to a trustee and placed in a trust for a period of years with a specific amount of income being paid to NSMC each year. The income may be a fixed percentage of the value of the property valued annually (Charitable Lead Unitrust) - or a fixed percentage of the initial value of the property transferred (Charitable Lead Annuity Trust).

You are entitled to a federal charitable deduction in the year the lead trust is established. Lead trusts are best funded with tax-exempt municipal bonds, because of the tax-free return you will not be taxed on the income. In other circumstances you will be taxed on the income paid to NSMC - so the charitable income tax deduction may produce little benefit unless you are in a significant higher tax bracket in the year of the gift.

Mike Davenport, Director of Planned Giving (978-825-6306, or by email) would welcome an opportunity to have a conversation with you to help you confirm whether this unique approach to giving is a good option for your consideration.

Donors who establish a charitable lead trust for the benefit of North Shore Medical Center are recognized as members of the North Shore Medical Center 1874 Charter Society.