CHARITABLE LEAD TRUST
There are various types of charitable gifts that reduce tax costs for transferring assets to heirs. A charitable lead trust is one of the best tools for tax savings on passing inter-generational transfers of wealth to heirs. The Charitable Lead Trust holds appreciating assets for a term of years (or lifetime), and makes payments to a charity. At the end of the trust’s term, all remaining trust assets are distributed to designated beneficiaries with greatly reduced gift and estate tax, regardless of how much the trust has grown.
CHARITABLE REMAINDER TRUST
Gifts to a Charitable Remainder Trust can be made in cash, but more often consist of highly appreciated stock, real estate, or a closely held business interest. In exchange for a charitable gift, the Charitable Remainder Trust pays income to the trust beneficiary (usually the donor and spouse) for a fixed period of time or for life. At the end of the trust, the remaining assets pass to one or more of the charities you have chosen.
