The Nongrantor Charitable Lead Trust

Detailed Description

How Does It Work

  1. Create trust agreement outlining terms of the trust—usually for a term of years

  2. Transfer cash or other property to trustee

  3. Trustee invests and manages trust assets

  4. Trustee makes annual payments to DePauw University

  5. Remainder transferred to your heirs

Benefits

  • Annual gift to DePauw University

  • Future gift to heirs at fraction of property's value

  • Professional management of assets during term of trust

  • No charitable deduction, but donor not taxed on annual income

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