Charitable Lead Trust
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.