Charitable Lead Trust (CLT)

A charitable lead trust (CLT) is a gift plan that allows you to transfer funds to the Church and your family members at a reduced tax cost.

To establish a CLT, you transfer assets to a trust that provides for the distribution of income to the Church through your parish, the Archdiocese of Detroit Endowment Foundation or another church institution for a period of years. The Church, therefore, is the "lead" beneficiary of this trust arrangement. At the end of the trust term, the trust distributes the property back to you or to other beneficiaries, typically your family.

There are two forms of CLT: a charitable lead annuity trust (CLAT) and a charitable lead unitrust (CLUT).

The material presented on these pages is for your general information on stewardship, estate planning and charitable giving, and is not intended as legal advice. You should consult your attorney and tax and financial advisors for specific transactions of the points illustrated here.