A gift of income to charity with a remainder to children is an example of which type of trust?

A gift of income to charity with a remainder to children exemplifies a charitable lead trust. This type of trust allows for the charitable organization to receive income generated from the trust's assets for a specific period, after which the remaining principal is distributed to the beneficiaries, in this case, the children.

The charitable lead trust is beneficial for both the charity and the grantor's heirs. It provides immediate support to charitable causes while eventually allowing for wealth transfer to heirs. The grantor can also benefit from potential tax advantages, as contributions to charity can be deductible.

In contrast, some other trust types would not fit this scenario as closely. A charitable bequest typically refers to assets in a will that go directly to charity upon death, without the income generation aspect. A charitable remainder trust provides income to the grantor or other beneficiaries during their lifetime before the remainder goes to the charity, which reverses the sequence present in the charitable lead trust. A private foundation, while a charitable entity, operates independently of the charitable lead trust structure and does not specifically delineate how income or principal is distributed to children or other beneficiaries.