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Charitable Lead Trusts (CLTs) are also considered split interest trusts like CRTs - but they are often described as the reverse of a CRT. A CLT provides the charity with the income stream, but the remainder coems back to either yourself or another designated beneficiary, such as a family member.
Here's how the CLT generally works. Note, however, that like the CRT, there are several variations not discussed in this brochure. CLTs are commonly used during life and at death.
A CLT created during life may or may not qualify for a charitable deduction for income tax purposes, depending upon how the CLT is structured. If you would like the remainder interest to be passed on to your children or other family members, then you will not be entitled to a deduction. However, the remainder interest going to the children or other family members will be treated as a taxable gift by you. A CLT is often used at death to obtain a charitable estate tax deduction that may reduce or eliminate any estate taxes due.