Think of a Charitable Lead Trust as basically the opposite of a Charitable Remainder Trust. In a lead trust, the Hinsdale Central Foundation receives the income interest from the trust for a specified number of years. When the trust expires, the remainder reverts back to the donor or someone designated by the donor. The income paid to the Hinsdale Central Foundation may be a fixed amount or a fixed percentage of the annual value of the trust. You or your estate receive a charitable deduction for the percentage payable to the Hinsdale Central Foundation when the trust begins.
You may find a Charitable Lead Trust valuable in estate planning, especially when considering estate and gift tax savings. Therefore, you may want to create a charitable lead trust to begin upon your death. It then stands the chance to accrue extra value to family members if the assets appreciate in value over the life of the trust.
Please consider consulting your attorney and/or tax advisor when planning a donation to the Hinsdale Central Foundation.