Everything you always wanted to know about charitable lead trusts but were afraid to ask.

By Kathleen Stephenson and Lisa B. Petkun

Charitable lead trusts have another variation that charitable remainder trusts do not: It can be either a grantor or a non-grantor trust. (A grantor trust is ignored for federal income-tax purposes.) If the charitable lead trust is a grantor trust, the settlor can claim an income tax deduction when the trust is created equal to the value of the charitable interest.