What is a charitable lead trust?

A charitable lead trust is a type of trust created to provide a donation to a charity for a certain period of time, typically for the length of the trustor’s life. After the donation period ends, any remaining funds in the trust are returned to the trustor or a designated beneficiary. This type of trust is beneficial for those looking to minimize estate and gift taxes, as the trustor may receive a charitable deduction for their donation. In Florida, charitable lead trusts are considered a form of a “trust with charitable beneficiaries.” That means that, in addition to the charitable organization or organizations the trustor has chosen to receive the donation, the trustor can also designate one or more individuals to receive the remaining balance of the trust after the charitable period ends. The trustor will need to provide the same information that would be required for any other trust in Florida, including information on the chosen charitable organization or organizations as well as the trust’s beneficiaries. In short, a charitable lead trust is a trust that provides donations to a charity for a certain period of time before the remaining funds in the trust are returned to the trustor or a designated beneficiary. This type of trust is beneficial for those looking to minimize estate and gift taxes and is a form of a “trust with charitable beneficiaries” in the state of Florida.

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