Magazine article The CPA Journal

More on Charitable Lead Trusts

Magazine article The CPA Journal

More on Charitable Lead Trusts

Article excerpt

I would like to add to the recent fine article by Edward Mendlowitz and Sidney Kess, "Assisting Individuals with Charitable Legacies" (April 2016, p. 64). Although the authors do mention charitable lead annuities or unitrusts, they are given short shrift under "other methods." It has been my experience that when I discuss the topic of charitable giving as a legacy, clients react very favorably to the charitable lead trust (CLT).

If I am advising a married couple, I normally recommend that the CLT become operative in the will of the survivor. Therefore, there is no diminution of the funds available to the surviving spouse on the first spouse's passing. The clients who are seeking charitable legacies react veiy favorably when I discuss how the CLT will not only carry their names for a fixed period of time (e.g., the John and Mary Smith Charitable Lead Trust), but also how their heirs will eventually receive the funds of the CLT at some later date.

The advantages to the family include the following:

* A charitable deduction for the estate, reducing the overall estate tax. …

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