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A charitable lead trust enables you to make a substantial gift to children, grandchildren, or other heirs on a future date that you specify, while also making a gift that benefits Loomis Chaffee now.
Through a lead trust, income is payable to Loomis Chaffee for a number of years with the corpus, on the termination of the trust, passing to your heirs with no additional estate tax. The lead trust is a flexible plan and can be one of the few ways to control exactly when an inheritance is received, while eliminating or reducing taxes and probate expenses that might otherwise be due on assets left to children, grandchildren, and others.
There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to Loomis Chaffee and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to Loomis Chaffee go up as well.