Similar to that of the CRT, a CLT can reduce the size of your estates, but is the opposite of a CRT. In this case the charity receives the income from the trust and whatever is remaining is credited back to your designated beneficiary (typically your children) at the end of the trust.

The value of your gift to your children will also be discounted because the total value of the property contributed to the CLT is also reduced by the income paid to the charity.