Charitable Lead Trust

The Charitable Lead Trust can be an attractive vehicle when the goal is to make a generous gift to the University and achieve certain income or estate tax planning objectives. An advantage of the Charitable Lead Trust is that the gift is made up front, providing an opportunity for the donor to experience the immediate impact of their support. A Charitable Lead Trust holds income-producing assets for a term of years, or for the lifetime of an individual, during which time annual payments are designated to Penn—either a fixed annuity payment, or a “unitrust” payment that varies annually based on the trust’s performance. At the end of the term, the trust assets are paid back to the donor, or to the donor’s children or grandchildren.