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

By Kathleen Stephenson and Lisa B. Petkun

For example: If the charitable lead trust provides that the remainder is to be distributed to the settlor’s children, the measuring life for the interest may be the father but not a friend.

Most charitable lead trusts are annuity trusts, also known as CLATs. This is because the charitable interest is fixed at the start, and all growth in excess of what is needed to satisfy the annuity will pass to the non-charitable beneficiary.