A Charitable Lead Trust (or CLT) is the mirror image of a Charitable Remainder Trust, since the charity receives the income stream and the donor or his/her family eventually receives the remainder interest. In this case, the charitable deduction is based on the value of the income going to the charity. Although the donor loses the income from the property, for clients who want to reduce their death taxable estates, and “do good” too, this is a winning combination.
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