A Charitable Lead Trust is the reverse of a Charitable Remainder Trust. After you make a gift, the Charitable Lead Trust pays income to AE911Truth first, for a term of years or for your lifetime. After that, the trust assets are passed back to you or designated beneficiaries.
How it Works
A charitable lead trust, the inverse of a charitable remainder trust (CRT), is an irrevocable trust that generates a potential income stream for one or more charities of the donor's choice, with the remaining assets eventually going to family members or other beneficiaries.
- Tax benefits vary depending on the type of trust
- Donors choose the term of the trust and the amount distributed, at least annually, to charity
- Donors may be able to donate a variety of assets
- Requires legal setup and ongoing maintenance costs
- A charitable lead trust (CLT) is often thought of as the inverse of a CRT. A CLT is an irrevocable trust that provides a fixed amount or a percentage of the trust assets paid to AE911Truth for a term of years or for the life of an individual or individuals. The remainder interest is either retained by the donor or given to a non-charitable beneficiary, usually a family member. A CLT is often created for lifetime giving and for estate planning purposes. Generally, the income tax benefits of a CLT may not be as significant as the estate and gift tax benefits, as described below.
- Although there can be significant tax benefits to establishing a CLT, the donor should be aware of the potential implications of the generation-skipping transfer tax. If the remainder beneficiaries are or could be the donor's grandchildren, the donor should consult with his or her advisor.
Please contact us if you have already included AE911Truth in your estate planning or if you are considering doing so. Our federal tax I.D. number is 26-1532493. You may want to download a copy of our confirmation of IRS tax-exempt status.