Charitable Lead Trust (CLT)

Charitable Lead Trust (CLT)

If your goal is to support Roger Bacon High School while also passing assets to your family in a tax-efficient way, a charitable lead trust (CLT) may be an excellent strategy.

This approach allows you to make meaningful gifts today while preserving wealth for the next generation.

How It Works

A charitable lead trust is structured to benefit both charity and your family over time:

1. Fund the Trust
   You transfer assets—such as cash, real estate, or other investments—into a trust.
2. Provide Income to Roger Bacon
   The trust makes annual payments to Roger Bacon High School for a set number of years.
3. Transfer Remaining Assets to Family
   At the end of the trust term, the remaining assets pass to your beneficiaries, often with significant tax advantages.

Key Benefits

A charitable lead trust can help you achieve multiple financial and philanthropic goals:

• Potential reduction or elimination of gift and estate taxes
• Opportunity to pass assets to heirs more efficiently
• Create a structured way to support Roger Bacon annually
• Possible eligibility for gift or estate tax deductions

A Strategy for Family and Philanthropy

A CLT is often used by individuals who want to:

• Support a cause they care deeply about during their lifetime
• Transfer wealth to children or heirs in a tax-efficient manner
• Take advantage of favorable tax planning opportunities

Planning Opportunities

There are several ways to structure a charitable lead trust depending on your goals:

Tax-Efficient Transfer Strategies
Under certain conditions, it may be possible to transfer significant assets to your family with little to no transfer tax, particularly if the trust’s investments perform well over time.

Enhanced Planning with Business or Real Estate Assets
Some donors explore pairing a lead trust with other planning tools—such as family partnerships—to further optimize how assets are transferred.

Flexible Payment Structures
Trusts can be designed to provide level payments or payments that increase over time, allowing for strategic growth and distribution planning.

Grantor Lead Trust Option
In some cases, the trust can be structured so that assets ultimately return to you after the charitable term, while still providing tax benefits and charitable support along the way.

A Long-Term Impact

A charitable lead trust offers a powerful way to align your financial planning with your values—supporting Roger Bacon High School today while providing for your family’s future.