Charitable Lead Trust
Charitable Lead Trust (CLT) is mirror image of charitable Remainder Trust (CRT). The donor establishes the trust during life or at death and the income generated from the trust flows to a charity organization like Warm Blankets Orphan Care for a stated period of years. When the trust term ends, remaining assets in the trust are passed on to your heirs. The benefits are:
- Passing on assets to heirs at a lower transfer tax cost
- Provide tax benefits to the donor
- Gift and estate tax deduction based on the assets value
- Make a significant charitable gift
The amount of income paid out each year for period of time depends on whether it is a charitable lead annuity trust or a charitable lead unitrust.
- Charitable Lead Unitrust: Your unitrust pays a fixed percentage of its value, determined each year, to Warm Blankets Orphan Care for a term of years or one or more lifetimes. The accumulated assets then go back to you or others you name.
- Charitable Lead Annuity Trust: Your trust pays a fixed dollar amount each year to Warm Blankets Orphan Care for a term of years or one or more lifetimes. The accumulated assets then go back to you or others you name.