This is Professor Russell James coming to you from Texas Tech University. Welcome to today's lecture on visual plan giving and introduction to the law and taxation of charitable gift planning. This is Professor Russell James at Texas Tech University, welcoming you to Charitable Lead Trust Part 1 Introduction. In both Charitable Remainder Trust and Charitable Lead Trust, the donor makes a gift to the trust, which then holds the assets, makes regular payments, and finally distributes the remaining amount at the end of the term of the trust. Unlike Charitable Remainder Trust, which provides payments to the donor or another person followed by the remaining amount going to charity, the Charitable Lead Trust provides payments to the charity followed by the remaining amount going to the donor or another person. The Charitable Lead Trust is a mirror image of the Charitable Remainder Trust, where the charitable and non-charitable beneficiaries change places. Just as with a Charitable Remainder Trust, there are two types of permitted payments from a Charitable Lead Trust: the fixed dollar annuity and the fixed percentage unit trust. If the Charitable Lead Trust pays a preset dollar amount to charity each year, it is a Charitable Lead Annuity Trust (CLAT). If the Charitable Lead Trust pays a set percentage of all trust assets each year, it is a Charitable Lead Unit Trust (CLUT). The Charitable Remainder Trust also permits variations that could lower the ongoing payments, such as a Net Income Charitable Remainder Trust (NIMCRUT), a Net Income with Makeup Charitable Remainder Trust (NIMCRUT), or a Flip Charitable Remainder Unit Trust (FLIP CRUT). None of these options are available with the Charitable Lead Trust because the ongoing payments in a Charitable Lead Trust go to charity and therefore may not be reduced. As a sophisticated charitable planning instrument, Charitable Lead Trust...
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Video instructions and help with filling out and completing Are Form 1041 Qft Charities
