If you are in the early stages of creating an estate plan, it is pivotal to carefully review all of the options in front of you. There are many different types of trusts and it is crucial to determine which one suits your interests best. Depending on your circumstances and wishes, a charitable lead trust (CLT) could make the most sense.
Before moving forward with a CLT, it is necessary to go over the ins and outs of these trusts and find answers to any questions you have.
How do charitable lead trusts work?
The New York State Office of Parks, Recreation and Historic Preservation provides information on various types of trusts, including charitable lead trusts. A CLT allows someone to choose a charity that will receive interest from their trust for a determined time period. At the end of this period, or upon one’s death, the assets left in the trust go to family or other designated beneficiaries.
What are the benefits of a charitable lead trust?
By setting up a CLT, you could find mental relief and contentment by contributing to a charity that you support. Moreover, this trust will also protect your assets and allow you to pass them on to your loved ones after death. It is important to review other potential options before you set up a CLT, such as charitable remainder trusts.
If you come to the conclusion that a charitable lead trust suits your needs best, make sure you familiarize yourself with the process of setting up a CLT thoroughly.