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Whats the difference between a charitable lead trust and a charitable remainder trust?

April 26, 2017charitable difference lead remainder Trust

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Whats the difference between a charitable lead trust and a charitable remainder trust?

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A charitable lead trust is one in which money is paid first to a charity for a specified amount of time. At the end of the trust period, the balance of the trust goes to a designated beneficiary, typically the family of the trust creator. A charitable remainder trust reverses that order, paying a beneficiary first. At the time of the beneficiary’s death, or at the end of a specified period of time, the remainder of the trust goes to charity.