Charitable Lead Trust

Partner with us to preserve your estate. A charitable lead trust allows you to provide an inheritance to your children and make a significant charitable gift through your estate. Typically income from the trust flows to the Lucile Packard Foundation for Children's Health for a stated number of years, after which the assets in the trust are distributed to your heirs.

You should know:

  • Lead trusts may be established for a term of years or for the lifetimes of an individual or individuals.
  • Individuals can avoid potential estate taxes on any additional appreciation on the asset transferred to the lead trust.

Frequently Asked Questions

How does a charitable lead trust work?

You transfer assets to an irrevocable trust that pays our foundation a fixed payment for a term of years you select, or for a person's lifetime. When the trust term ends, individuals you designate receive whatever remains in the trust. You select the charitable organization, determine how much it receives, and choose the remainder beneficiaries.

Who typically creates a charitable lead trust?

Individuals with large estates who are concerned about gift and estate taxes that will be incurred when their estate passes to their beneficiaries. Charitable lead trusts are one of the most complex gift planning vehicles and it is advised that you consult an experienced financial advisor.

The Lucile Packard Foundation for Children’s Health is a tax-exempt organization and does not provide tax, legal, or financial advice. Any document or information provided to you by our staff is intended to be educational and informational. The Lucile Packard Foundation for Children’s Health strongly encourages all of our donors to seek counsel from their own legal and financial advisors. Please know that any information or documents shared by the development staff cannot be used to avoid tax-related penalties.