A Window of Opportunity for Charitable Lead Trusts

Timothy V. Swartley, CFP®, Senior Vice President and Senior Trust Officer, Univest Bank and Trust Co.

Historically low interest rates have heightened interest in an often-overlooked but powerfully effective estate-planning and gift-giving tool – charitable lead trusts (CLT).

With a CLT, you transfer assets (such as cash, stocks and even property) to a trust for a fixed number of years. During this time, the assets are invested and the trust makes payments to a charity (or charities) that you designate. When the trust expires, the assets pass directly to your beneficiaries, bypassing your estate and potentially saving on gift and estate taxes.

A CLT may be ideal for high-net-worth individuals who:

If some or all of the above scenarios apply to you, a CLT may be a positive option. It potentially provides a triple tax benefit:

If you have interest in creating a CLT, set up a confidential appointment with one of our trust and estate-planning specialists who can help you and your advisors determine the most appropriate solution for your needs. Call us at 215-721-8374.

Univest Foundation was established as an independent entity in 2002 and is a 501(c)3 organization.

Note that this financial institution does not give tax advice. Consult a qualified tax advisor for guidance about your situation. Investment products offered by Univest Bank and Trust Co.'s Wealth Management and Trust Division and Univest Investments, Inc., member FINRA and SIPC, a licensed broker dealer and investment advisory subsidiary of Univest Corporation of Pennsylvania, are not insured by the FDIC or any federal government agency, are not a deposit or other obligation of or guaranteed by the depository institution, and are subject to risks, including the possible loss of principal amount invested.

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