The donor selects the individuals to receive the corpus of the trust at the end of the trust term. The donor can be the remainder beneficiary if desired. Type of Contribution Cash, securities, real estate, closely-held stock, and other items of value can be used to fund a charitable lead trust. Property that is expected to appreciate significantly during the term of the trust usually provides the greatest gift tax advantage for the donor. The donor chooses how often trust payments will be made.
Most donors select an annual payment to charity.
The trust tax year must be the calendar year. The trustee generally tries to preserve the assets of the trust for the remainder beneficiaries, while paying attention to diversification and risk factors. Ordinary income and capital gain is taxable to the trust unless it is distributed to the income beneficiaries. If the Aquarium is to act as trustee, the trust must meet certain requirements. Although the Aquarium serves as trustee without charge, third party expenses such as administrative costs and investment expenses are charged back to the trust.