For Charitable Lead Trust we have terms and definitions in 5 topics. The topics are Charitable Donation, Charitable Giving, Fundraising, Homeowners Insurance and Philanthropy.

Charitable Lead Trust (Charitable Donation)

A trust that provides for the payment of an amount annually, or at more frequent intervals, to a designated charity. The amount must equal at least 5 percent of the initial fair market value of the trust. At the death of the trust creator, or at the end of the designated term of years, the remaining trust principal is distributed to a designated beneficiary or beneficiaries.

Charitable Lead Trust (Charitable Giving)

This type of estate planning arrangement allows for a regular, fixed amount to go to a charity for a for a specified period, after which , the remainder of the trust passes to one or more persons designated by the donor. The donor is entitled to a charitable contribution deduction for the portion of the property given to the charity.

Charitable Lead Trust (Fundraising)

A trust that provides an income stream to a charity for a specified period of time. At the end of that period, trust assets are distributed to noncharitable beneficiaries such as children or grandchildren. The donor is able to make gifts of assets to his/her heirs at favorable gift tax rates and remove assets from his/her estate while benefiting his/her favorite charity. See also:Split-Interest Gift, Split-Interest Trust

Charitable Lead Trust (Homeowners Insurance)

This is a trust that pays a nonprofit organization income from a donated asset for a fixed number of years. After that period has passed, the principal goes to the donor's beneficiaries with reduced estate or gift taxes. This type of a trust helps families to keep assets in the family, while reducing the cost of passing it along.

Charitable Lead Trust (Philanthropy)

A legal device used to set aside money or property of one person for the benefit of one or more persons or organizations. Specifically, this type of trust allows for a regular, fixed amount to go to a charity for a specific number of years. At the end of that time, the remainder of the trust passes to one's heirs.

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