Charitable Lead and Remainder Trusts
✨ Provide Financial Benefits While Creating a Lasting Legacy ✨
Looking for a strategic way to give that balances personal financial needs with philanthropic impact? Charitable lead and remainder trusts (CLTs and CRTs) offer a powerful solution to achieve both.
Why It Matters
Charitable trusts are flexible tools that help you align your financial goals with your charitable vision. These trusts can provide tax advantages, generate income, and support your favorite causes—all while leaving a lasting legacy.
Three Benefits of Charitable Lead and Remainder Trusts
1. Income and Impact
CLTs allow you to support charities immediately while retaining assets for your heirs. CRTs generate income for you or your family before benefiting your chosen causes.
CLTs allow you to support charities immediately while retaining assets for your heirs. CRTs generate income for you or your family before benefiting your chosen causes.
2. Tax Efficiency
Both trust types provide significant tax benefits, including deductions for charitable contributions and reduced estate taxes.
Both trust types provide significant tax benefits, including deductions for charitable contributions and reduced estate taxes.
3. Legacy Planning
Create a lasting impact by ensuring your wealth supports the causes you care about for years to come.
Create a lasting impact by ensuring your wealth supports the causes you care about for years to come.
Quick Tip:
Work with a qualified estate planner to customize your trust. Tailoring terms can maximize both your financial and philanthropic goals.
Work with a qualified estate planner to customize your trust. Tailoring terms can maximize both your financial and philanthropic goals.
FAQs: Charitable Trusts Explained
Q: How do I choose between a lead trust and a remainder trust?
A: It depends on your financial priorities. A CLT prioritizes current charitable giving, while a CRT focuses on providing income before the charitable gift.
A: It depends on your financial priorities. A CLT prioritizes current charitable giving, while a CRT focuses on providing income before the charitable gift.
Q: Can I change the charitable beneficiaries later?
A: Most trusts allow some flexibility to adjust beneficiaries, but consult with your advisor to understand specific terms.
A: Most trusts allow some flexibility to adjust beneficiaries, but consult with your advisor to understand specific terms.
Q: Are there restrictions on the assets I can use to fund a trust?
A: Typically, you can use cash, stocks, real estate, or other appreciated assets to fund your trust.
A: Typically, you can use cash, stocks, real estate, or other appreciated assets to fund your trust.
What’s Next in This Series?
Here’s a preview of upcoming topics in Wiser Way to Give:
👉 Trust Protectors: The Superheroes of the Trust World
Discover how trust protectors safeguard your philanthropic vision and ensure your wishes are carried out as intended.
Discover how trust protectors safeguard your philanthropic vision and ensure your wishes are carried out as intended.
👉 Maximizing Impact Through Appreciated Assets
Learn how donating stocks, real estate, or other appreciated assets can increase your charitable reach while offering significant tax savings.
Learn how donating stocks, real estate, or other appreciated assets can increase your charitable reach while offering significant tax savings.
What inspires you to use innovative tools to balance financial security with charitable giving?
Let’s talk! Share your thoughts in the comments or reach out directly—we’re here to help you create a lasting impact. 🌟
Disclaimer
This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
