A charitable lead trust works just like a charitable remainder trust in reverse. In other words, assets from the trust are distributed to at least one charitable beneficiary for a specified period first. At the end of that time, the assets remaining in the trust are distributed to at least one non-charitable beneficiary. Using the above example of an initial $5 million gift, the trust terms might direct yearly distributions in the amount of $100,000 to be made to your chosen charity for ten years. At the end of that 10-year period the remaining $4 million (plus interest) remaining in the trust would be distributed to non-charitable beneficiaries.
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