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Charitable Lead Trust | Its Working & Terms

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What is a Charitable Lead Trust?

A Charitable Lead Trust (CLT) is a type of trust in which people donate their assets to it for a specific time. The trust will make regular payments to a charity over that period. These payments can be fixed or variable as per the requirements of the CLT. 

It is also a way of reducing estate tax liability for the donor. Many donors follow this charity method to exempt their tax returns on their assets. This type of trust can be created by a person in their life or after their death through a legal will. 

Working of CLT (Charitable Lead Trust)

The working of a Charitable Lead Trust is pretty simple to understand. The donor donates the cash to a CLT which makes regular payments to a specific charity or multiple ones for a specific period. 

At the end of this period, the remaining assets in the trust are typically transferred to non-charitable beneficiaries, such as family members. These assets can also be transferred to the original donor at the end if they haven’t added any beneficiary.

Assets That Can Be Donated To CLT

A list of assets can be donated to CLT in terms of charity. Some of the common asset types are listed below:

  • Cash

  • Publicly traded securities

  • Real estate investment

  • Income-generating businesses/assets

Our Major Services For Charitable Lead Trust

Consultation & Planning: Our team has extensive experience in consulting and planning the Charitable Lead Trust for hundreds of donors. We are here to listen to you and offer professional consultation for better outcomes.


Tax Planning: DimovTax is here to guide you about tax implications for CLT and the potential of tax reduction after creating this trust. Come to us for detailed guidance!


Legal Documentation: From trust agreements to beneficiary designations, we are here to support you in the clearance of legal documents. Our team is here to cover everything for you and get the necessary documents ready for the creation of CLT.


Investment Management: We are the best for developing investment strategy and reporting to you timely for quick actions if anything happens.

Why Choose DimovTax?

Expertise: We have a deep understanding of the field and experienced in estate planning and trusts creation.


Extensive Knowledge: Our team has been working in the field for years and has in-depth legal and financial knowledge of CLT.


Personalized Assistance: DimovTax offers personalized assistance to customers as per their demands regarding the creation of a Charitable Lead Trust. 


Problem-Solving Skills: We don’t leave you alone in a complicated situation and are ready to solve your problems.

Get in Touch Now!

DimovTax is always ready to serve you with top-notch services for financial and tax management. Just make a call to us at (866) 554-0148 or email us at info@dimovtax.com. Our representative will listen to you or schedule a meeting with the professionals for better assistance.

 

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