Bequest Charitable Gift Annuity—Immediate Charitable Gift Annuity—Deferred Charitable Lead Trust Charitable Remainder Annuity Trust Charitable Remainder Unitrust Life Insurance Retirement Plan

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Charitable Lead Trust
(Gift illustration and description)

Often described as the "opposite" of a charitable remainder trust, a charitable lead trust (CLT) makes distributions first to the Law School Foundation and then distributes the remainder to one or more beneficiaries you designate. It is a wonderful way to witness the impact your gift is having on the Law School during your lifetime and transfer assets to family or other beneficiaries at the end of the trust term.

Unlike a charitable remainder trust, a CLT is not an income-tax-exempt trust, so it will typically, though not always, be structured in a manner that does not affect your income tax situation. The main tax benefits of a CLT are found in the ability to (1) avoid gift tax at trust creation when you name children or grandchildren as remainder beneficiaries, and (2) transfer all appreciation on the trust assets to your remainder beneficiaries without gift or estate tax on trust termination.

How it works

Benefits

Tax considerations

The benefits of a CLT, including possible income, estate, gift, and GST tax benefits, will vary depending on your financial situation, whom you designate as your remainder beneficiaries, and how your trust is structured. For this reason, a CLT is often used as part of a comprehensive estate and philanthropic plan.

We will be pleased to talk with you in more detail about the relevant considerations and to provide sample calculations to give you a sense of how a lead trust can work for you, but you should consult with your estate planning or tax advisor to understand exactly how a charitable lead trust will fit into your overall financial and estate plans.

Planning Points

For more information

Email us, or call us at 877-307-0158 (toll free) or 434-924-4514 (direct) so that we may answer your questions and help you through the process.


The materials provided in this website and the examples contained herein are for illustration purposes only and are not intended as legal or tax advice. We encourage you to consult your own legal and tax advisor.