A Charitable Lead Unitrust provides fixed periodic distributions to charity followed by a non-charitable remainder or reversionary interest. In other words, the charity receives payment throughout the length of the trust. At the end of the period, the trust assets are paid back to the donor or a non-charitable beneficiary(ies). The difference with this trust is that the charity’s interest comes before the non-charitable interest.
One point to remember is that a unitrust pays a varying annuity. The amount paid changes each payment period since the payments are based on periodic fluctuations in the value of the trust.