What is a charitable lead trust?
A charitable lead trust is a type of trust used in Hawaii inheritance law that provides financial assets to charities for a certain period of time, followed by assets being passed down to beneficiaries. This trust pays a set amount of money or property to a charity on a regular basis, such as annually, for a certain number of years. After this period is over, the trust passes on the remainder of the assets to designated beneficiaries. The trust offers many advantages, including tax benefits for the donor, as the donor will receive tax deductions for the money given to the charity. This also offers beneficiaries the chance to inherit assets they otherwise would not have been able to receive. The trust also allows for a greater level of control over how the assets are distributed, as the donor can decide where the assets will go. These trusts are most commonly used by individuals who want to create a lasting legacy of giving to a charity while still providing for their family.
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