|Schaffer & Company Wealth Preservation
Charitable Lead Trust
If your financial situation allows, you may want to consider a charitable lead trust as a way of making a significant gift. Unlike a charitable remainder trust, which is funded with an initial donation that pays income over time to the donor, the terms of the charitable lead trust provide for income to be paid to the charity, with the remainder ultimately passing to the donor's beneficiaries. Thus, this type of arrangement is suitable for you if you want to benefit a charity with income derived from assets currently not needed - but wish your family members or heirs to own these assets eventually.
A charitable lead trust remains in place for a specified number of years, during which time the charity annually receives a certain percentage of the overall value of the trust.
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