What is a charitable trust?
Charitable remainder trusts are irrevocable structures established by a donor to provide income to a beneficiary while the public charity or private foundation receives the remainder value when the trust terminates. So, for example, a trust could provide income to a surviving spouse for his or her lifetime. The donor may claim a charitable income tax deduction, and may not have to pay an immediate capital gains tax when the charitable remainder trust disposes of the appreciated asset and purchases other property as it manages its portfolio of trust property. At the end of the trust term, the charity receives whatever amount is left in the trust. Charitable lead trusts make payments, either of a fixed amount or a percentage of trust principal to charity during its term. At the end of the trust term, the remainder can either go back to the donor or to heirs named by the donor. The donor may sometimes claim a charitable income tax deduction or a gift/estate tax deduction for making a lead
