charitable lead trust

A Charitable Lad Trust, as given by its name, is indeed a trust that gives away money to charitable organizations. However, what differentiates this type of trusts from other charity trusts is that only a portion of the trust ends up in possession of the charity. In short, the charity is not actually a real beneficiary. After the trustmaker consents to the agreement, leaving his estate in the trust, the trustee distributes the money parts of the money to charity and then to the beneficiaries. Other than the clear reason, which is to donate money to the less fortunate, charitable lead trusts are primarily known for their tax benefits. By giving away money to charities first, the requirement of overwhelming death taxes can be reduced significantly - the amount given to charity is not taxable, and at the same time reduces the value of the estate.

Fast Facts

Colleges are a common recipient of charitable lead trusts
a charitable lead trust can be set up in an annuity structure

charitable lead trust - Financial Planners, Articles and Q&A

Search Results for "charitable lead trust"

Articles

Results 1-5 of 55 for "charitable lead trust"

Custodial College Savings Accounts

In many ways, custodial savings accounts are similar trust accounts. In both, a person who is not the benefici...
- Site: financialplannernetwork.com
Financial Planning For Disasters And Emergencies

Your financial world may be good right now, but that doesn’t mean it always will be. You should take stock whi...
- Site: financialplannernetwork.com
- 1 of 1 user(s) found this useful
CFP FAQ's

Q. - What is a Financial Planner ?
- Site: financialplannernetwork.com
Estate Planning

Are you in need of professional advice regarding estate planning?...
- Site: financialplannernetwork.com
How to Repair Credit

With the slow down in the economy, rising foreclosures, and unemployment American’s credit scores have suffere...
- Site: financialplannernetwork.com