Charitable Lead Trust (CLT)

Other Names:  Front Trust; Charitable Front Trust

Give money or property to a trust. One or more charities will receive an annual (or more frequent) annuity payment (or unitrust payment in the case of a CLUT). One is designated heirs will receive the principal of the trust when it ends. This can help the person achieve substantial gift or estate tax benefits on transferring assets to heirs. If you do not face an estate tax a CLT can still be used to inculcate philanthropic values and defer an heir's receipt of some assets.