Wall Street Journal Article on Charitable Trust

November 2, 2015 - Posted by: admin - In category:

taxes - No Responses

Most of us believe in giving to charities and in the right circumstances, charitable trusts can provide tremendous tax benefits (as well as the warm fuzzy feeling of doing good).

There was an article in the Wall Street Journal yesterday about an estate planning tool known as a Charitable Lead Annuity Trust or “CLAT”.  The article gives a brief and understandable description of a complex legal structure designed to provide significant tax benefits to the benefactor, while at the same time being a legal and accepted tool of charitable giving.


There are many different forms and flavors of charitable trusts and what is recommended and appropriate in one situation may not be a good fit in another scenario.  As we say so often, this is neither “one size fits all” nor “do it yourself” stuff. Please be sure to consult with your CPA and your estate planning attorney prior to engaging in these type of arrangements.  There is nothing wrong with saving taxes while you are being charitable and altruistic.  Even so, you will want to make sure you have the right professional assistance in doing such things, as there could be pitfalls and even larger tax bills in your future if these things are undertaken in an incorrect manner.  Don’t let that scare you away from being charitable and benefiting yourself at the same time.  Just be sure you have the right help.

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