Charitable Lead Trusts

If you want to see your philanthropy at work during your lifetime, you can transfer assets to a charitable lead trust (CLT) that provides income to Robyne’s Nest for a period of years. At the end of that period, the CLT assets revert to you or someone you designate in the CLT.

Conceptually, a CLT is the opposite of a charitable remainder trust (CRT) where the noncharitable beneficiary receives an income interest and the charitable beneficiary receives the remainder interest.

From our standpoint, one significant advantage of a CLT over a CRT is that we would begin to receive income immediately upon the establishment and funding of the CLT.

The CLT established during your life may reduce estate and gift tax on an appreciating asset and may provide some income tax savings. A CLT established as a testamentary trust that becomes effective at your death may serve as an addition to a marital deduction trust or, if you do not have a surviving spouse, ultimately benefiting your descendants in place of a marital deduction trust.

Ask your legal or financial planner how you can use your Charitable Lead Trust to make an impact today!