Charitable Lead Trust

If you are looking for a creative way to pass on assets to your family while reducing or eliminating gift or estate taxes, a Charitable Lead Trust (CLT) may be an excellent way to achieve charitable and tax-planning goals.

A CLT uses the assets that were initially contributed to the trust to make annual payments to Georgetown for a term of years (usually 10 to 20). At the end of the term, the remaining assets in the trust pass to the non-charitable beneficiaries, without passing through the donor’s estate. An added benefit of a CLT is that distributions from the trust are made to Georgetown during your lifetime so you will be able to see the impact of your gift.

A Charitable Lead Trust (CLT) allows donors to make a significant gift to Georgetown, while also minimizing their taxable estate, and then passing on assets and any growth tax-free to non-charitable beneficiaries, such as children or grandchildren. CLTs do not provide an income tax deduction, but may reduce income taxes by transferring income generating assets to the trust. There is also the potential for significant gift and estate tax savings.

CLTs are complex vehicles with many variables to consider. It is recommended that you consult an attorney if you are considering creating a CLT. With proper consideration and preparation, a CLT can be an excellent way to reach personal charitable and tax-planning goals.

If you are interested in learning more about CLTs, contact the Office of Planned Giving at (800) 347-8067, by email at plannedgiving@georgetown.edu or through our information request form.

The information on this website is not intended as legal, financial, or tax advice. Please consult an attorney, financial advisor, or tax advisor in your planning.