A Charitable Lead Trust (CLT) is a gift of cash or other property to an irrevocable trust. Josh McDowell Ministry receives an income stream from the trust for a term of years. Depending on how the trust is structured, the donor enjoys a current income, gift, or estate tax deduction on the donated assets.
If you want to provide an enduring income stream to Josh McDowell Ministry, and you have a large, taxable estate, a CLT can do that for a term of years with the remainder interest of the trust passing to family members. The charitable deduction then is based on the actuarial value of income stream to Josh McDowell Ministry.
Though CLTs are not tax exempt, they can greatly reduce or eliminate gift or estate tax on trust assets passing to family members. CLTs should be managed and thoughtfully designed with oversight.
As Charitable Lead Trusts are complex in nature, Josh McDowell Ministry recommends that you carefully review this option with your attorney and tax advisors to ensure it is compatible with your entire estate plan.
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