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Charitable Lead Trusts A donor creates a Charitable Lead Trust by transferring ownership of an asset to a trust. The trust gives the income, or a percentage of the income, to the Arch Foundation each year for a period of years (usually 15-20). At the end of the period of years, the trust assets are given back to the donor or to named beneficiaries. The lead trust typically is used with assets with a potential for continued high appreciation. The trust permits the assets to be transferred to other family members at a low transfer cost. Utilizing the lead trust, the donor may leave a significantly larger inheritance to his or her heirs than he or she could have left via a will or other trusts.
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