Charitable Lead Trust (CLT)
Charitable Lead Trusts (CLT) are often viewed as the opposite of a charitable remainder trust. A donor transfers property to the lead trust, which pays a percentage of the value of the trust assets, usually for a term of years, to the NISS Foundation. At the end of the trust term, the remaining assets in the trust and any growth it has realized are passed to your heirs. Although there is no income tax deduction when you create a charitable lead trust, your gift or estate tax is greatly discounted and any growth is passed to your heirs gift and estate tax free. It is one of the only transfer devices currently used that can discount the value of the original assets and result in little or no taxes. At the same time, you fulfill your charitable desires.
The typical donor:
- Has a moderate to large taxable estate.
- Has given to charities in the past.
- Holds assets with growth potential.
- Desires to pass certain assets to heirs.
Gifts features and benefits:
- Gift and estate tax deduction on the value of assets transferred
- Growth transferred tax free
- Perpetuates a tradition of charitable giving
- Management of assets transferred
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