Overview
A charitable lead trust in which the charity's payment is a percentage of the trust's annually revalued assets rather than a fixed dollar amount. As the assets grow, so does the charitable stream — a better inflation hedge for the charity than a CLAT, while still passing the remainder to heirs at the end of the term.
Best For
- Donors who want the charity's support to grow over time
- Families combining multi-year giving with a wealth-transfer goal
- Those funding with assets expected to appreciate steadily
📊 Key Tax & Giving Advantage
Gift/estate-tax leverage on the remainder to heirs, paired with a charitable payout that keeps pace with asset growth.
Considerations
- Irrevocable, with annual revaluation required
- Variable charitable payout makes the remainder to heirs less predictable
- Modeling against the §7520 rate is essential
Interested in Charitable Lead Unitrust (CLUT)?
Every philanthropic structure should be tailored to your assets, goals, and state law. Request a private consultation and we'll help you choose and establish the right vehicle.
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