3,4) Split-interest trusts include three distinct types: charitable remainder trusts, charitable lead trusts
, and pooled income funds.
The charitable lead trust
option is an easy way to support NCUF's critical financial education initiatives and I encourage more credit unions to take advantage of it, " said BECU President/CEO Gary Oakland, who also currently is chairman of the NCUF.
A charitable lead trust
is essentially the reverse of a charitable remainder trust; the donor grants a right to payment to the charity, with the remainder reverting to the donor (or his named beneficiaries).
This article discusses two main types of charitable trusts, charitable remainder trusts (CRTs) and charitable lead trusts
(CLTs); describes the advantages of each; and discusses which to use and when, based on your clients' goals.
46) We believe the reason for this underuse is that success in transferring untaxed wealth in a charitable lead trust
is not certain.
A split interest gift may be made in trust or property; however, charitable split interest trusts include many of the more popular methods of charitable giving such as charitable remainder trusts and charitable lead trusts
(both discussed below).
For grantor charitable lead trusts
, this is not a problem--the income is taxable to the donor anyway.
As stated above, a charitable lead trust
(CLT) is essentially the reverse of a charitable remainder trust.
Among the more popular are permutations of two traditional charitable donation plans: the charitable remainder trust and the charitable lead trust
If you don't feel comfortable denying your heirs the principal of your investments but can manage without the income yourself, consider a charitable lead trust
With a charitable lead trust
, assets are placed in trust with a specified amount of income from the trust distributed to charity, while you leave the property to a family member or other noncharitable beneficiary.
By establishing a charitable lead trust
,(24) donors can make current charitable contributions of income to a community foundation while reserving capital for family or other beneficiaries.