A charitable lead trust (CLT) is most effective in a low-interest-rate environment, so conditions for taking advantage of a CLT now are favorable. A CLT provides a regular income stream to charities during the trust term, after which the remaining assets pass to noncharitable beneficiaries. A charitable lead annuity trust (CLAT) makes annual payments to charity equal to a fixed dollar amount or a fixed percentage of the trust assets’ initial value. Typically, people establish CLATs during their lives because it allows them to lock in a favorable interest rate.