Wealth Preservation_Flipbook_2024

Flow of a Charitable Lead Trust Beneficiaries Assets Charitable organization Donor Annual income Remaining assets Death of donor Trust Charitable Trusts trust is not subject to capital gains taxes. The CLT pays an income to the designated charity until the trust ends, which could be a set number of years or upon the death of the donor. The remaining assets are then returned to the donor or the donor’s heirs. A CLT could provide an income stream to your favorite charity and help reduce, or in some cases eliminate, estate and gift taxes on appreciated assets that eventually go to your heirs. Do you have a favorite charity that you would like to endow with a generous gift? If so, you may want to consider two types of charitable trusts that offer benefits to the donor as well as to the charity. Charitable Lead Trust A charitable lead trust (CLT) may be appropriate if you want to gift appreciated assets. When you transfer assets to the trust, the fully appreciated value of the assets is preserved, because the