Charitable Lead Unitrust (CLUT)

A trust set up to benefit a charity during the donor's lifetime or for a fixed term of years. While the donor is alive the income from the trust goes to one or more charitable foundations. When the donor dies the assets in the trust go to the heirs or beneficiaries named in the trust. A CLUT is generally for the very wealthy and for those whose children won't need the income until years later when the trust ends.