Charitable Lead Annuity Trust

What it is:

You have property that you want to pass to your heirs, but during your life you have no need for the income generated by the property. This tool allows you to place assets in trust, the income from which goes to the BPSEF and the remainder to the donors discretion.

Why do this: There are a variety of different types of charitable lead trusts, and your situation will determine the type which is best for you. Some of the benefits of the different types of trusts include a charitable deduction now for the value of the income payments given to the BPSEF, others will simply allow you to not be taxed on the income generated by the assets.

Charitable lead trusts can be a powerful tool, but you should always consult with your finance planner and lawyer before determining if this tool may be right for you.