TCP Charitable Trusts · Updated November 2026
Charitable Remainder Trust or Charitable Lead Trust: Who Gets Paid First?
The names tell you the payment order: charity comes at the end of a CRT and leads in a CLT.
Charitable remainder trust
A noncharitable beneficiary generally receives an income interest first, with charity receiving the remainder afterward.
Charitable lead trust
Charity receives the lead interest first, and noncharitable beneficiaries receive the remaining property later.
Planning goals
These structures can balance charitable giving, income needs, estate planning, wealth transfer, and tax timing.
Do not reduce it to tax savings
The appropriate trust depends on who needs income now, who should receive assets later, charitable goals, asset growth expectations, and applicable rules.
The takeaway
CRT: charity later. CLT: charity first.
Related Summit guides
FAQ
Does CRT mean charity gets the income stream first?
No.
Does CLT mean charity gets the lead interest?
Yes.
Are these ordinary simple trusts?
No. They are specialized charitable planning structures.