Charitable Lead Unitrust (CLUT) Law and Legal Definition

Charitable Lead Unitrust (CLUT) is a custom designed and individually managed trust that enables an individual to give a variable annual amount to charity for a fixed term of years or the life of one or more individuals. The charities receive a percentage of the trust's value each year. This means the benefits will fluctuate based on the trust's investment returns or losses. Payments are determined by recalculating the payment each pay period.