Charitable lead annuity trusts are perfect for those who wish to leave something to their children and grandchildren, but want to minimize the percentage taken by estate and generation-skipping transfer taxes.
With this trust, part of the estate is donated to the trust immediately, and the income goes to a charitable fund at the foundation for however many years you choose. The trust reduces estate and gift taxes and prevents the beneficiaries from paying property tax.
When the period of the trust ends, the trust is terminated, and the assets go to the beneficiaries. The best part is, the community benefits during the period of the trust, and children or grandchildren receive more from the trust than they would have otherwise.