Many families have either a charitable remainder trust (CRT) or a charitable lead trust (CLT). Although these charitable
vehicles offer significant advantages, providing tax savings and distributions back to the family while benefitting charities, they do have one inherent drawback: They cannot carry out a family’s charitable intentions beyond their limited terms.
However, when a private foundation is established alongside either a CRT or CLT, the donor and the donor’s family can receive all the usual benefits of these trusts while retaining the family’s charitable control—potentially forever.
A CLT or a CRT can be used to fund a private foundation immediately, even if the term of the trust will not end for many years.
Let’s take a closer look at charitable lead and charitable remainder trusts.
- Charitable VehiclesGrantmakingTax Planning and StrategiesAttorneyCPA or Tax SpecialistFamily OfficeFoundation MemberWealth Advisor
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