A super grantor charitable lead trust is a charitable lead trust that has both grantor trust and non-grantor trust characteristics. Sometimes called a “defective” lead trust, the trust distributes its remaining principal to the donor’s heirs when it terminates. However, the donor retains just enough rights in the trust for the trust to be considered a grantor trust for income tax purposes and a non-grantor trust for gift and estate tax purposes. As a result, the donor pays tax on the trust’s taxable income, but the trust’s assets are out of the donor’s estate. The donor receives both an income tax deduction and a gift tax deduction in the year the trust is created. Because the gift is deemed to be “for the use of” the charity, the income tax deduction is subject to IRS 20%/30% limitations.