Using Private Foundations With CRTs and CLTs

A charitable remainder trust (CRT) or charitable lead trust (CLT) can provide families the benefits of trust distributions as well as tax related benefits for charitable donations. However, they are often limited in the length of time the trust exists for. Additionally, if the charitable disbursement is going to a public charity the family does not have the ability to control the charitable funds after the trust’s set period has ended. By combining a CLT or CRT with a private foundation the trust funds can be directed to the foundation, which the family can continue to direct the use of the donated funds  even after the CRT or CLT are no longer existing.

See Jeffrey D. Haskell, Using a Private Foundation to Stretch Family Control Over Charitable Interests, Foundation Source, Nov. 12, 2014.