Charitable Lead Trust

Definition of "Charitable lead trust"

Knykoleta Rose  Colucci real estate agent
Knykoleta Rose Colucci, Real Estate Agent White Wolf Brokers

Trust in which a charity receives income from a donated asset for a specified number of years that it is held in that trust. After the specified period concludes, the principal is transferred to the donor's beneficiaries. This vehicle is used to keep wealth in the family by significantly reducing the costs of transfer to beneficiaries. The charity has the use of the income earned by that money, but the charity does not have use of the principal. This distribution is a taxable gift.


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