The Grantor Charitable Lead Trust
A grantor lead trust provides a donor with a charitable income-tax deduction for the present value of the payments The College of Saint Rose is to receive from the trust for a specified period of time. The donor, however, continues to be taxed on the income earned by the trust each year—including the amount distributed to The College of Saint Rose. (To avoid this negative tax result, donors often fund grantor lead trusts with tax-exempt securities.) At the end of the trust term, the assets are returned to the donor.