A charitable lead trust (CLT) is a type of irrevocable trust in which the donor sets a fixed annual gift for the charities named. The donor requires the trustee to pay a certain amount of the income (the lead) to charity for a specified period. At the termination of that period, the trust property passes to individual (non-charitable) remainder beneficiaries who could be the donor, the donor’s family members or other specified individuals. A charitable lead annuity trust requires that the lead interest be fixed as a dollar amount or percentage of the initial contribution.
Charitable Lead Annuity Trust (CLAT)
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