The definition of a “charitable lead unitrust” is a special type of financial vehicle that makes it possible for someone to give money to charity while still retaining their assets. An asset is placed within a trust which is managed by a trustee. The profits derived from the asset is given to charity for a set period of time. After that period has expired, the asset is returned to the grantor. While the asset is held in the trust, the grantor does not have direct control over it; this is what the trustee does.
There are tax benefits related to a charitable lead unitrust. While held in the trust, the grantor is not responsible for the taxes incurred by associated income, since this income is gifted to charity instead. The grantor does not have to relinquish the ownership of their assets, but will instead be able to donate money generated by the asset. At the end of the charitable lead unitrust, the assets can be given to family members, as a form of inheritance. This is a popular way to manage large assets that aren’t necessary for the grantor’s income. In order to perform basic functions such as opening a bank account or filing taxes, you will need to obtain your Federal Tax ID Number online.