As a continuation of our discussion into the Grantor Charitable Lead Trust, we will now turn our discussion towards the Non-Grantor Charitable Lead Trust.
With a non-grantor charitable lead trust, the trust—and not the grantor—is considered the owner of the trust assets. However, this trust structure offers greater benefits for transfer tax purposes.
Notably, both grantor and non-grantor trusts can be structured to be “reversionary,” meaning that the remainder assets revert to the individual(s) establishing the trust or “non-reversionary,” meaning that the remainder assets will be distributed to a beneficiary other than the originators.
References:
Charitable, F. (2020). Charitable lead trusts. Retrieved August 17, 2020, from https://www.fidelitycharitable.org/guidance/philanthropy/charitable-lead-trusts.html