How to Use Charitable Lead Trusts (CLTs) for Estate Tax Reduction
How to Use Charitable Lead Trusts (CLTs) for Estate Tax Reduction Charitable Lead Trusts (CLTs) are powerful tools in estate planning that allow individuals to support charitable causes while also achieving substantial tax savings. By directing income to a charity for a set term before passing the remaining assets to beneficiaries, CLTs create a unique blend of philanthropy and financial strategy. This guide will walk you through how CLTs work, their benefits, and how you can use them to lower your estate taxes. 📌 Table of Contents What Is a Charitable Lead Trust? Benefits of Using a CLT Types of CLTs How to Set Up a CLT Risks and Considerations Further Resources 🔍 What Is a Charitable Lead Trust? A Charitable Lead Trust is an irrevocable trust designed to reduce the taxable portion of an estate. It works by providing income payments to a designated charity for a specific period or for the lifetime of an individual. After the term ends...