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SEI Private Trust Company Personal Trust Services Charitable lead trusts Today, there are more ways than ever to realize your personal vision of philanthropy. The best way to make it happen— while making the most of your giving—is to understand the vehicles available to you, such as a charitable lead trust. A charitable lead trust (CLT) allows you to place assets into an irrevocable trust. An irrevocable trust is a type of trust in which the terms cannot be modified, amended, or terminated without the permission of the grantor's named beneficiary or beneficiaries.1 The charities you choose will receive an income stream for the term of the trust. That term can be a specified number of years or as long as you live. When the trust ends, the remaining assets will pass to your heirs or to you, depending on the type of CLT you have created. Here's how it works: 1. Name a charity or charities as the income beneficiary of the trust. 2. Appoint a beneficiary to receive the assets at the end of the trust's term (or the assets can be returned to you). 3. Contribute assets into the trust from your estate. 4. The trust pays income to the designated charity or charities for the remainder of your life or the term of the trust. 5. After the trust ends, the trust passes the remaining assets to the designated non-charity beneficiary. Source: Robert Keebler, CPA Overview 1 Source: Investopedia Charity (Income beneciary) CLT Donor receives an immediate income tax deduction for present value of the future annuity stream to the charity Annual (or more frequent) payments for a term of years Transfer of assets At the end of the term, the donor receives the residual assets held in the trust Donor (Remainder beneciary)

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