A charitable lead trust (CLT) can help balance your transfer of wealth and charitable goals while minimizing taxes. A CLT is an irrevocable trust that is established during the donor’s lifetime or at death, providing a stream of income to charities over a term, the lifetime of certain persons, or both. After the term, the remaining assets pass to non-charitable beneficiaries. Another benefit includes the availability of an estate tax charitable deduction to the donor’s estate for that amount passing to charity. Ultimately, the use of a CLT should be explored by charitably inclined donors.
See Jaclyn S. O’Leary, Nonprofit Newsletter Fall 2016 – It’s Time to Explore a Charitable Lead Trust – A Charitable Planning Technique Used by Jackie O., Day Pitney LLP, Fall 2016.
Special thanks to Jay Stapleton (Account Director/Public Relations, Quinn & Hary Marketing) for bringing this article to my attention.
