Lead Trust – How it works:
Lead trusts are essentially the opposite of remainder trusts. The donor establishes a trust with cash or assets while St. John’s receives distributions for a period of years, with the assets reverting to the donor or members of the donor’s family at the end of the trust term. This works well for donors who are not dependent upon the yield from the assets in the near term, but would like to preserve family control over the assets in the long term and avoid gift and estate taxes that a direct transfer to family might otherwise generate. Lead trusts, like remainder trusts, are flexible but complicated and require the help of an estate or tax attorney to draft and manage.