A charitable remainder trust (CRT) or a charitable lead interest (CLT) is usually of limited period of family control, with the former of the donor’s lifespan and latter of the term of the trust. Both CRT and CLT make distributions to charities, and at the same time grant tax savings and benefits to the family. Despite of this significant advantages, the family only enjoys limited years of control over the trust. However, if a private foundation is established alongside the trust, the family will be able to stretch control over its charitable giving.

See Jeffrey D. Haskell, “Using a Private Foundation to Stretch Family Control over Charitable Interests,” Foundation Source (2014).

Posted by Jiaqi Wang, Associate Editor, Wealth Strategies Journal.