A grantor lead trust provides that all trust assets revert to the original owner (and/or spouse) at the conclusion of the trust term. The donor will be entitled to an income tax deduction for the present value of the income interest to a designated Masonic charity in the year that the gift is made. This calculation is determined according to IRS regulations and is a function of several factors, including the fair market value of the assets held in trust, the term of the trust, the payout rate, and certain investment assumptions. With a grantor trust, the donor is fully liable for any tax due on the income generated to the Masonic charity. This situation may be minimized if the trust invests in tax-exempt property.

Back