Selecting the right legal instrument for a charitable donation can help ensure that your good deed goes unpunished.
One effective but lesser-known instrument for charitable donations is the charitable lead trust (CLT). Donors can set up this type of trust in Houston to provide a stream of income to a particular charity for a pre-specified term, after which the property will revert to selected members of the donor’s family.
Estate planning attorneys and CPAs all keep an eye on letter rulings to see if IRS decisions have any bearing on their own client’s situations. In this case, a taxpayer is setting up a revocable trust and wants to use a Charitable Lead Annuity Trust known as a CLAT.
A recently posted letter ruling from the IRS addresses the use of a CLAT used in estate planning.
A CLAT letter ruling could be of interest to those who are using life insurance, annuities or other instruments in estate planning.
Houston Estate Planning and Elder Law Attorney Blog