Bear Market Provides Boost to a Little-Known Strategy; a Record Low Hurdle Rate

By Mike Spector

Ms. Ridgley and her three daughters advise how the fund should dole out the payments. "It's been very meaningful to them as well," Ms. Ridgley says.
Potential Pitfalls

Charitable lead trusts do have some potential pitfalls. They are irrevocable, so once you put assets or cash in, you can't take them out. If the trust's assets go down in value over a long stretch, the benefit for heirs could be less, because the trust must make its charitable payments regardless of market conditions.