Charitable Lead Trusts (CLRs)

Property may be transferred to family members at very low gift and estate tax by permitting income to go first to charity over a period of years, and then pass to family members. The method used to achieve this result is called the Charitable Lead Trust. The CLT is the opposite of a Charitable Remainder Trust because the trustee pays the income to charity and the remainder is distributed at the termination of the trust to family members. Specially drafted CLTs can also result in an income tax deduction to the donor.

Planned Giving Concepts helps the CLT Trustee with these services as required:

  • Federal tax returns including forms 5227, 1041A, 1041, 8282 and 8283.
  • State tax return preparation.
  • Calculation of the payments to the beneficiary.
  • Annual reporting to interest parties.
  • Review of trust documents.

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