Charitable Lead Trust
Charitable Lead Trusts (CLTs) are designed to provide income to your favorite charities for a fixed term of years, the lives of one or more individuals, or a combination of the two; after which, trust assets are paid either back to the donor or to one or more noncharitable beneficiaries named in the trust instrument (spouse, children, etc.).
Also referred to as a “Charitable Income Trust,” the term “Charitable Lead Trust” is used more commonly because the payment of the income interest to charity leads or precedes the payment of the remainder interest.
This type of gift vehicle essentially allows you to support for favorite charity for a few years, and then provide financial support with tax benefits to a family member or relative - all with the same gift.