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Simple English definitions for legal terms

charitable lead trust

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A quick definition of charitable lead trust:

A charitable lead trust is a type of trust where some of the money earned goes to a charity, but the assets do not go to the charity when the trust ends. The person who sets up the trust decides how long it will last, and during that time, a charity gets some of the money earned by the assets. When the trust ends, the assets go back to the person who set up the trust or someone they choose. There are two types of charitable lead trusts: grantor and non-grantor. In grantor trusts, the person who sets up the trust controls it and gets a tax deduction, but they have to pay taxes on the money earned. In non-grantor trusts, the trust pays the taxes and gets the tax deductions, and there are fewer taxes when the trust ends.

A more thorough explanation:

A charitable lead trust is a type of trust that allows individuals to donate a portion of their income to a charity for a specific amount of time. The charity receives a certain amount of income produced by the assets, and when the trust ends, the assets go back to the grantor or whomever the grantor chooses. The grantor cannot terminate the trust at will; they terminate on the date specified when created.

For example, John sets up a charitable lead trust for 10 years and donates $100,000 to a charity. The charity receives $5,000 per year for 10 years, and at the end of the 10 years, the remaining assets go back to John or his chosen beneficiary.

Charitable lead trusts can be set up as grantor or non-grantor charitable trusts. In grantor charitable trusts, the grantor retains control of the trust and can take a tax deduction when the trust is created. However, the grantor must pay the taxes on income generated by the trust. In non-grantor trusts, the trust pays the taxes and receives the tax deductions from the charity payments, but there are much fewer transfer taxes when the trust ends compared to grantor charitable trusts.

Overall, charitable lead trusts allow individuals to support a charity while still retaining control of their assets.

charitable gift annuity | charitable organization

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JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
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yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
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good morning! hoping waves will come our wave today
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GW wave today?
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