A valuable tax reduction for income distributions Charitable lead trusts provide income distributions to your nonprofit organization--either for a period of years or during one or more lifetimes. After this period, the remaining assets are returned to the donor or to his or her beneficiaries. While the grantor will not receive a charitable income tax deduction for the gift, he or she will not be taxed on the income stream. The net result is a 100% income tax deduction for the income distribution. |
Take Action! Contact a nonprofit business banker at the Bremer office nearest you. | Charitable lead trusts also can qualify for gift and estate tax charitable deductions, providing an effective way to transfer assets to family members with a greatly reduced transfer tax cost.
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